Wix (WIX) Beat Revenue Estimates But Here’s What Bank of America’s Michael McGovern Is Worried About Farooq Thu, November 12, 2026 at 3:57 PM EST 3 min read WIX -3.66% ^GSPC -0.35% ^IXIC -0.39% Trade Wix.com on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We just published a list of the 10 Stocks Analysts Are Downgrading Right Now and Wix.com (NASDAQ:WIX) ranked 6th on this list.
Stocks slid again on Tuesday after a hotter-than-expected inflation report fed bets on higher interest rates, and all three major indexes finished lower. The Dow fell 0.30% to 52,231.89, the S&P 500 lost 0.38% to 7,520.93, and the Nasdaq Composite dropped 0.74% to 25,065.87.
Government data showed consumer prices rose 0.4% in October, the third straight monthly gain of at least that size, against the 0.3% economists expected. Core prices rose 0.3%, ahead of a 0.2% forecast, and traders spent the session weighing how many more rate increases may be coming.
Federal Reserve Governor Christopher Waller said the central bank should raise rates in December and consider a half-point increase, while Dallas Federal Reserve President Lorie Logan said at least two more quarter-point hikes are needed. Traders now see an 84% chance of a quarter-point move next month and a 15% chance of a half-point increase.
Jason Ware, chief investment officer at Albion Financial Group, told Reuters that investors are spooked by the possibility of a 50 basis point hike. That worry landed on a market that had already taken a beating: the Nasdaq closed nearly 12% below its October peak last week, and the S&P 500 sank 4.4% in a single session, its worst day since April 2025. For the other side of that debate, see our list of oversold AI stocks where Wall Street analysts see 50%+ upside.
Skyler Weinand, chief investment officer at Regan Capital, said stocks have seen a heavy rotation out of AI-related names and into defensive sectors such as healthcare. Technology took the sharpest hit. Last week the S&P 500 technology sector fell 7.3% and the Philadelphia semiconductor index dropped more than 12% as fears of a data-center slowdown spread after the midterm elections.
Oxford Economics expects the Fed to raise rates in December and again in March, while Kansas City Fed President Jeff Schmid described policy as still accommodative.
Wix made it to our list because it drew an analyst downgrade on November 10 and has an average upside potential of 16%. Bank of America analyst Michael McGovern downgraded Wix to Underperform from Buy on November 10 and cut his price target to $68 from $75. He cites slowing growth in Partners, the business where agencies build sites for clients, competition from AI coding tools such as Lovable and Cursor, and higher marketing spending that could limit profit. He says rapid growth at Base44, Wix's AI app-building platform, is masking weaker underlying performance.
Third-quarter bookings rose 11% to $573 million and revenue rose 13% to $570.2 million, ahead of the $566.1 million analysts expected, but adjusted operating income of $68.7 million fell short of the $74 million estimate. McGovern allows he could prove too pessimistic if Base44 keeps its subscribers through renewal cycles and becomes profitable faster than expected, and he sees stronger adoption of Headless as one way to steady Partners. Wix says Base44 is nearing $250 million in annual recurring revenue, expects its gross margin to exit the year above 60%, and says renewal rates are improving across user cohorts, with retention of its earliest cohort at 12 months above expectations. It plans to keep spending heavily to win Base44 users.
While we acknowledge the risk and potential of WIX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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