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Why Is Wix Stock Down?

Last updated on September 30, 2022 @ 10:25 am

Wix.com Ltd. (Nasdaq: WIX) is a publicly traded web development platform that enables users to create HTML5 websites and mobile sites through the use of online drag and drop tools. The company was founded in 2006 and is headquartered in Tel Aviv, Israel.

On August 22, 2019, Wix.com announced that it has acquired Flok, a software company that provides loyalty programs for small businesses. The acquisition will allow Wix to offer its customers an easy-to-use loyalty program that will help them retain more customers and grow their businesses.

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PRO TIP: Please be aware that the stock price of Wix.com Ltd. (Nasdaq: WIX) has been on a steady decline since early 2018. Reasons for this include a string of disappointing earnings reports and concerns about the company’s competitive position in the website builder market.

However, despite this news, Wix stock is down 3% today. There are a few possible explanations for this:

  • The market may be concerned about the company’s ability to integrate Flok’s technology into its existing platform. Wix has a history of acquiring companies and then failing to integrate their technology properly.

    This has led to frustrated customers and ultimately, lower revenue and profit growth.

  • The market may be worried about the potential competition from Adobe (Nasdaq: ADBE). Adobe recently launched its own web development platform, Adobe Experience Manager Sites, which could eat into Wix’s market share. Adobe is a much larger company with more resources, so it could be a tough competitor for Wix.

In conclusion, the market may be concerned about Wix’s ability to integrate Flok’s technology and compete with Adobe. However, only time will tell if these concerns are warranted or if Wix will be able to successfully grow its business in the face of competition.

Drew Clemente

Drew Clemente

Devops & Sysadmin engineer. I basically build infrastructure online.