JPMorgan maintains Neutral Wix.com stock with $189 target
Investing.com
Published May 21, 2025 05:35AM ET
On Wednesday, JPMorgan reaffirmed its Neutral rating on Wix.com (NASDAQ:WIX) shares, maintaining a price target of $189.00. With a current market capitalization of $10.2 billion and strong financial health metrics according to InvestingPro , Wix.com continues to draw investor attention. The decision follows Wix.com's first-quarter 2025 results, which showcased the strength of new customer cohorts. This positive trend continued into April and the early part of May, bolstered by robust activity at the top of the sales funnel. The company's revenue growth of nearly 13% and healthy gross profit margin of 68% support this positive momentum.
Despite these encouraging signs, Wix.com's management has chosen to uphold its full-year 2025 earnings guidance. This move was unexpected for JPMorgan, as the guidance now seems conservative, especially given that foreign exchange headwinds are no longer a concern. The company justified its cautious stance by pointing to ongoing macroeconomic uncertainties, particularly within the Business Solutions segment.
The upper range of Wix.com's second-quarter 2025 revenue guidance was slightly below the consensus estimates, which the company attributes to challenging comparatives from the previous year. Nevertheless, Wix.com's outlook for the latter half of the year remains optimistic. The company anticipates an acceleration in bookings and revenue growth, along with an increase in free cash flow generation, despite the tougher comparisons it faces.
In other recent news, Wix.com Ltd reported its Q1 2025 results, with revenue reaching $473.7 million, slightly surpassing the IBES estimate of $472.1 million. The company recorded a net income of $33.766 million and an operating income of $37.405 million. Looking forward, Wix.com expects Q2 2025 revenue to be between $485-$489 million, indicating an 11-12% year-over-year increase. Benchmark analyst Mark Zgutowicz revised the price target for Wix.com to $245 from $260, maintaining a Buy rating, while Jefferies also kept a Buy rating with a $230 price target, citing strong fundamentals.
In contrast, CFRA downgraded Wix.com from Buy to Hold, reducing the price target to $159 due to a reassessment of the company's slower growth trajectory. Meanwhile, Wix.com introduced a new AI-powered adaptive content application designed to enhance user engagement by personalizing website content in real-time. This new tool is part of Wix's broader strategy to integrate AI into its offerings, aiming to optimize digital presence for its users. These developments reflect Wix.com's ongoing efforts to innovate and adapt to changing market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.