Wix.com's Lowered Forecast Reinforces View of AI Headwinds Hitting Web Design Space, RBC Says

MT Newswires Live
Jun 09

Wix.com's (WIX) lowered forecast for Q2 and 2026 reinforces the view that artificial intelligence headwinds are hitting the web design space, RBC Capital Markets said in a Tuesday research note.

With the company lowering its revenue guidance for Q2 and 2026 to low/mid-teens from mid-teens growth on account of incremental weakness in the partner business, RBC said that this seems to be a case of the partners' own business headwinds versus displacing Wix's tools with AI-native alternatives.

Even as Wix.com maintained its free cash flow margin outlook of high-teens, aided by a 20% headcount reduction, RBC said it struggles to see a path to stabilization given the cross currents and competitive landscape.

RBC lowered its price target on the company to $45 from $60 and maintained its sector perform rating.

Price: 48.82, Change: +0.60, Percent Change: +1.25

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