Wix Shares Decline Following Lowered Free Cash Flow Margin Outlook
Wix.com (WIX) reported third-quarter earnings and revenue that exceeded Wall Street expectations. However, the company's stock fell approximately 4% in premarket trading following a downward revision to its full-year free cash flow margin guidance. The reduction in the cash flow outlook is attributed to increased marketing investments aimed at promoting Base44, the company's AI-driven business initiative. While top-line growth remains strong, investors reacted negatively to the anticipated impact on near-term margins.