What Happened?
Shares of website building platform Wix (NASDAQ: WIX) jumped 6.7% in the morning session after the company announced the pricing of an upsized $1 billion convertible senior notes offering and received an analyst upgrade. The debt offering, which was increased from an initial $750 million due to strong demand, carries zero interest and is due in 2030. The notes have a conversion price of approximately $210.49 per share, representing a significant 37.5% premium over the stock's recent closing price. This signals strong investor confidence in Wix's future growth. The company plans to use the proceeds for share repurchases and general corporate purposes. Adding to the positive sentiment, CFRA upgraded Wix's stock to "Buy," forecasting revenue growth of 14% to $2.0 billion in 2025 and another 13% in 2026, citing a strong outlook.
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What Is The Market Telling Us
Wix’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 19 days ago when the stock dropped 3.1% after a broader market downturn impacted the technology sector, as investors grew cautious ahead of a key speech by Federal Reserve Chair Jerome Powell. The move came as U.S. equity markets recorded a fifth consecutive day of losses for major indexes like the S&P 500, with technology stocks experiencing the largest declines.
Wix is down 24.3% since the beginning of the year, and at $163.82 per share, it is trading 33.6% below its 52-week high of $246.76 from January 2025. Investors who bought $1,000 worth of Wix’s shares 5 years ago would now be looking at an investment worth $624.61.
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