Oct 16, 2026: software sells off and Wix gives back its Stripe jump
Wix started the day near where it ended Oct 15. Premarket trades ran from $80.12 at 6:30am to $81.30 at 8:55am, against an Oct 15 close of $81.14. It opened at $80.04, reached $81.57 around 9:50am, and then slid as software turned lower in late morning. It touched $74.39 around noon, then recovered to $75.64 by 12:50pm. By then about 449,000 shares had traded.
What pushed it down:
- Software sold off as a group. Yahoo Finance reported that software stocks gave up early gains and turned into broad selling by 11:17am, with 41 of 45 stocks in its basket lower, about $130 billion of value lost. Its live blog tied the slide to rotation out of tech after a chip selloff and continued scrutiny of AI. 24/7 Wall St. said investors were skeptical about who pays for the AI buildout behind many software growth stories.
- Rates and inflation stayed in the background. Yahoo Finance noted the 10-year Treasury yield near 5.07% after a hot consumer price report on Wednesday raised the odds of a Federal Reserve rate increase. Higher yields weigh on growth stocks.
- The Oct 15 jump was easy to give back. Wix rose 9.2% on Oct 15 after the Stripe wallet news. StockStory noted Wix has had 45 moves of more than 5% in the past year, so a one-day reversal is common for this stock.
Here is how Wix compared with its peers and the software ETF at 12:50pm:
| Stock or fund | Oct 15 close | Oct 16, 12:50pm | Change |
|---|---|---|---|
| Wix (WIX) | $81.14 | $75.64 | -6.8% |
| GoDaddy (GDDY) | $107.29 | $105.53 | -1.6% |
| HubSpot (HUBS) | $238.91 | $226.63 | -5.1% |
| Shopify (SHOP) | $178.14 | $174.75 | -1.9% |
| Twilio (TWLO) | $273.40 | $242.25 | -11.4% |
| ServiceNow (NOW) | $148.57 | $140.89 | -5.2% |
| Salesforce (CRM) | $246.74 | $239.85 | -2.8% |
| iShares software ETF (IGV) | $109.60 | $104.45 | -4.7% |
Squarespace, the other large website builder, no longer trades publicly. GoDaddy, the closest listed peer, fell far less than Wix. That gap is the one piece of the move a sector story does not fully explain, and the Oct 15 run-up is the simplest reason for it: GoDaddy did not have a 9% gain to give back.
By 12:50pm, RSI(14) stood at 50, the shares sat 2% below their 50-day average of $77.10 and 5% above their 200-day average of $71.45, volume of about 0.45 million shares was less than half its 20-day average of 1.0 million, and the stock was 49% below its 52-week high of $148.33. A sharp drop on light volume usually points to a market-wide move rather than holders reacting to new company facts.
Oct 15, 2026: the Stripe wallet news
Wix rose 9.2% to $81.14 on Oct 15. The company said Symphony by Wix, its AI agent platform for small businesses, now integrates Link's wallet for agents, built by Stripe. Agents can pay supplier invoices and reorder inventory when stock falls below limits the business owner sets. StockStory called the news meaningful but said it was not something that would fundamentally change how the market sees the business. A day earlier, on Oct 14, MarketBeat listed a Hold rating on Wix from Wells Fargo.
The numbers behind the doubt
Wix's second-quarter report on Aug 4 beat forecasts and lifted the stock, but the growth rate is coming down.
- Revenue was $563.1 million, up 15%, and bookings were $569.1 million, up 12%.
- Partners revenue, from agencies and resellers that build sites for others, was $213.8 million, up 17%.
- Third-quarter guidance called for revenue growth of a low-double-digit percentage, below the second quarter's 15%.
- The 2026 outlook stayed at low- to mid-teens revenue growth, low-teens bookings growth and a high-teens free cash flow margin excluding acquisition and restructuring costs.
- GAAP net loss was $76.4 million, while non-GAAP net income was $68.2 million, or $1.39 per diluted share.
The June realignment set that outlook. In a June 8 Form 6-K, Wix said it cut about 20% of its workforce, roughly 1,000 people, and expected about $50 million less bookings and $25 million less revenue in 2026, partly from a sharper slowdown in the Partners business. It offset that with about $70 million of cost savings this year and raised its 2026 free cash flow target to about $420 million. For how a reset like this moves a stock, see why guidance changes move stocks.
The case for the stock
The valuation is low for a company that generates cash. The forward price-to-earnings ratio was 10.7, price to sales of 1.5 and price to free cash flow of 7.1, on a market value of about $3.2 billion. Wix's $420 million free cash flow target is about 13% of that market value. Our guide to free cash flow yield explains why that ratio matters more than earnings for a company with large non-cash charges.
The AI products are where management sees growth. Wix said Base44, its no-code app builder, now runs on its own language model, Base 1, and that it expects Base44's non-GAAP gross margin to reach about 60% in the second half, up from near zero at the start of the year. CEO Avishai Abrahami said the portfolio of purpose-built models "creates a significant competitive advantage for Wix in the coming years." The Stripe wallet news adds to the same push into AI agents for small businesses.
Analysts sit close to the current price. The consensus target of $77, a median of $80, a high of $100 and a low of $45.
The risks
- AI cuts both ways. The same tools Wix sells also let people build sites and apps without a traditional website builder. Morgan Stanley downgraded Wix to Equal-weight in July and cut its target to $60 from $112, saying the newer products had not improved overall growth.
- Slowing bookings. Bookings grew 12% in the second quarter, slower than revenue, and Wix said bookings will keep lagging revenue because of Partners softness.
- Heavy marketing. Wix plans to spend more on Base44 marketing in the second half, which could hold back margins if the AI savings arrive late.
- Short interest. Short sellers held 16% of the float, which can make swings larger in both directions. See our explainer on short interest and days to cover.
- Volatility. The stock fell from $88.38 on Sep 1 to a $69.60 close on Sep 28 before recovering, and moves of 5% or more are frequent.
What comes next
- The third-quarter report, expected around November 18. Watch bookings growth against the low-teens outlook, Base44's gross margin, Partners revenue, and whether Wix holds its $420 million free cash flow target. Our guide to preparing for an earnings report covers what to check on the day.
- The date announcement. Wix announced last year's third-quarter date on October 28, 2025; a confirmed date fixes the end of our view window.
- The software group. If IGV keeps falling, Wix is likely to follow. A Wix drop while software recovers would point to a company issue we have not yet found.
- More AI agent news. Further Symphony or Base44 partnerships would test whether the Oct 15 reaction was a one-day trade or the start of a rerating.