Diamond Hill Capital Exits Wix.com Amid Weak Performance and AI Disruption Concerns
In its Q2 2026 investor letter, Diamond Hill Capital Large Cap Strategy revealed it had exited its position in Wix.com (WIX) due to weak financial results and concerns over disruption from artificial intelligence. The firm cited slowing growth driven by AI-driven no-code solutions as a key factor behind the decision. Additionally, after reporting underwhelming first-quarter 2026 earnings, Wix announced layoffs and revised downward its revenue guidance for the year. The strategy's overall performance lagged behind the Russell 1000 Value Index due to poor stock selection in technology, healthcare, and industrials sectors—areas heavily impacted by AI trends. The firm acknowledged limited exposure to companies benefiting from AI-related capital spending as a major drag on returns but remains optimistic about finding attractive opportunities through active management. Wix.com's shares closed at $56.34 per share with a 9.60% one-month return, though the stock has declined by nearly 58% over the past year.
Tickers: $WIX