Wix.com Ltd. (NASDAQ: WIX) stock lost 8.4% on Thursday . The stock traded as low as $131.42 and last traded at $134.00, approximately 7,818,400 shares were traded during trading. An increase of 1,138% from the average daily volume of 619,929 shares. The stock had previously closed at $145.44.
Wix., through its subsidiaries, provides an Internet development platform that enables users to develop Web sites, as well as mobile sites, using drag-and-drop tools in the United States and internationally.
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The company reported $0.33 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $0.01.
Wix.com had a return on equity of 16.43% and a net margin of 18.09%. The company’s revenue for the quarter was up 47.3% compared to the same quarter last year.
During the same period in the prior year, the business posted $0.24 EPS.
Research analysts have recently issued reports about the company.
Zacks Investment Research raised Wix.com from a “sell” rating to a “hold” rating in a research report on Tuesday, April 3rd.
Why Is Wix Stock Down Today?
The simple answer is that the market is overreacting to Wix’s slight miss on earnings and revenue expectations for its first quarter of 2018.
While it’s true that Wix’s earnings per share of 33 cents fell one cent short of analyst expectations, this miss is hardly worthy of such a massive sell-off in the stock price.
In addition, Wix’s quarterly revenue growth of 47% year over year actually beat analyst expectations by two percentage points.
The bottom line is that Wix is still a high-growth company with plenty of long-term upside potential.
The sell-off in Wix stock today is simply an overreaction to a minor miss on earnings and revenue expectations for the company’s first quarter of 2018. While it’s true that Wix missed earnings expectations by one penny per share, this miss is hardly worthy of such a massive sell-off in the stock price given the company’s strong quarterly revenue growth rate of 47%.
