Wix Soars 16% on Q2 Beat, Short Squeeze Amplifies Rally
WIX sits 64% above its 52-week low of $40.16.
Summary
Wix shares surged 16% after Q2 results beat across the board—revenue of $563M topped the $554M consensus, and adjusted EPS of $1.39 crushed the $1.16 estimate. The move was supercharged by a short squeeze, with nearly 26% of the float short. The AI-powered Base44 platform is the growth engine: management expects its non-GAAP gross margin to jump to ~60% in H2 from near zero, driven by the new in-house Base 1 LLM that slashes inference costs. The company reaffirmed full-year guidance for low- to mid-teens revenue growth and high-teens FCF margins, signaling confidence despite ongoing investment. This follows a turbulent May—a 27% post-Q1 drop, a 20% workforce cut, and shareholder investigations—making the strong Q2 and AI traction a potential turning point. Watch for sustained Base44 adoption and margin expansion in H2 to validate the re-rating.
At the time of this announcement, WIX was trading at $65.90 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $40.16 to $190.93. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.