BofA Downgrades Wix (WIX) to Underperform on AI Competition, Slowing Core Growth

Bank of America has downgraded Wix.com (WIX) to Underperform from Buy, cutting its price target to $68 from $75. The downgrade cites:

• AI Competition: Rising threat from AI coding tools like Lovable and Cursor impacting Wix's core website-building business, especially among agency partners.
• Slowing Core Growth: While Base44 platform shows strong growth, BofA estimates core Wix ARR growth could be as low as 3-4%.
• Profitability Concerns: Increased marketing spending is expected to limit profitability, with Q3 adjusted operating income missing estimates.

BofA also lowered 2027 revenue and EBITDA forecasts, anticipating sustained competitive pressures and slower core business expansion [1].