Why Wix.com Stock Collapsed 24.9% in May
Shares of Wix (NASDAQ: WIX) fell an astonishing 24.9% in May, according to data from S&P Global Market Intelligence. While the rest of the market is soaring, Wix has been left in the dust because of a recent earnings report with a double whammy of soaring costs due to artificial intelligence (AI) use cases and a narrative around its core website-building platform becoming an AI loser.
Now, the stock is trading near its lowest level in 10 years. Here's why investors are bearish on Wix, and whether the stock is a good buy right now.
As a website-building platform, investors are very worried that AI is coming for Wix's lunch. The theory goes that if potential customers can use a chatbot to spin up a fully functional website, there is no need for Wix's templates.
Source Fool.com
