Bank of America Downgrades Wix.com Amid AI Competition

Bank of America downgraded Wix.com from Buy to Underperform and lowered its price target from $75 to $68. The brokerage cited intensifying competition from AI coding tools such as Lovable and Cursor, which it suggests may threaten the core website-building business.

While Wix.com reported third-quarter revenue of $570.2 million and bookings of $573 million—both of which exceeded analyst expectations—the company's Partners segment missed estimates and showed a growth slowdown. Adjusted operating income of $68.7 million also fell short of analyst estimates due to rising sales and marketing expenses.

Bank of America analyst Michael McGovern stated that the rapid growth of the AI-powered Base44 platform is masking weaker performance in the core business. McGovern noted that annual recurring revenue growth in that core segment could be as low as 3% to 4%.