Wix Stock Has Crashed This Past Year, and One Investor Exited a $4.35 Million Position

Elwood Capital Partners liquidated its entire Wix.com holding in the first quarter of 2026, selling 52,033 shares for an estimated $4.35 million based on average quarterly pricing. The move reduced the fund’s exposure to Wix from 3.2% of its reportable assets to zero, with a net position change of $5.41 million. As of May 14, 2026, Wix’s stock traded at $56.06, down 63% over the past year and underperforming the S&P 500, which rose approximately 28% in the same period. The company’s market capitalization stands at $2.3 billion, with trailing twelve-month revenue of $2.06 billion but a net loss of $40.59 million. Wix operates a cloud-based platform for website creation, generating revenue through subscriptions, value-added services, and payment processing. Despite the stock decline, Wix reported first-quarter revenue growth of 14% year-over-year to $541 million, with bookings rising 15% to $585 million. Total annual recurring revenue reached $1.9 billion, up 15%, driven by AI-driven products like Base44, which surpassed $150 million in annual recurring revenue. CEO Avishai Abrahami expressed confidence in Wix’s long-term position, citing AI advancements such as Wix Harmony, a proprietary large language model. CFO Lior Shemesh noted a nearly 50% year-over-year increase in bookings from new user cohorts. However, Wix reported a GAAP net loss of $57.5 million for the quarter, reflecting continued investment in growth and AI initiatives. The market remains skeptical about whether these investments will translate into sustained profitability. Elwood Capital Partners’ exit follows a broader trend of investor caution amid Wix’s stock underperformance. The fund’s top holdings now include Amazon ($17.73 million), Taiwan Semiconductor Manufacturing ($11.83 million), and Microsoft ($8.42 million). While Wix’s operational metrics show strength, the company must demonstrate clearer paths to profitability to regain investor confidence.