Shares of Wix.com (NASDAQ: WIX) plummeted 7.67% on Wednesday following the release of its first-quarter 2025 earnings report that fell short of analyst expectations and a maintained conservative outlook for the full year. The website builder platform's disappointing results and cautious stance on future performance have triggered a significant sell-off among investors.

Wix reported adjusted earnings per share of $1.55 for Q1 2025, missing the analyst consensus estimate of $1.60. While revenue grew 13% year-over-year to $473.65 million, slightly beating estimates of $472.86 million, the company's guidance for the rest of the year disappointed investors. Wix maintained its full-year 2025 revenue outlook of $1.97 billion to $2 billion, below the analyst consensus of $2.02 billion, citing macroeconomic uncertainties, particularly in its Business Solutions segment.

Adding to investor concerns, BofA Global Research cut its price objective on Wix.com from $270 to $230 in response to the earnings report and outlook. Despite highlighting strong top-of-funnel demand and robust new user cohort bookings, Wix's conservative stance and the broader market's apprehension about the tech sector's growth prospects in a challenging economic environment have led to the significant decline in stock price. The company's decision to maintain a cautious outlook, even in the face of some positive indicators, suggests that Wix management anticipates potential headwinds in the coming quarters.