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What This $3.9 Million Wix Buy Could Mean After the Stock’s 54% Collapse

finance.yahoo.com · Thu, May 7, 2026 at 1:20 AM GMT+8

On May 6, 2026, Brooktree Capital Management disclosed a buy of Wix.com (NASDAQ:WIX), adding 46,129 shares in a trade estimated at $3.86 million based on quarterly average pricing.

According to a Securities and Exchange Commission (SEC) filing dated May 6, 2026, Brooktree Capital Management increased its position in Wix.com by 46,129 shares during the first quarter. The estimated transaction value is $3.86 million, based on the average closing price over the quarter. The quarter-end value of the stake increased by $4.13 million, a figure that includes changes in both share count and stock price.

NASDAQ: IBKR: $18.26 million (14.5% of AUM)

NASDAQ: RMNI: $12.98 million (10.3% of AUM)

NASDAQ: IAC: $12.59 million (10.0% of AUM)

NYSE: BRK-B: $8.98 million (7.1% of AUM)

As of May 5, 2026, Wix shares were priced at $77.03, down 53.7% over the past year and underperforming the S&P 500 by 82.2 percentage points.

Wix offers a cloud-based website creation platform, including Wix Editor, Wix ADI, Corvid by Wix, Ascend by Wix, Wix Logo Maker, Wix Answers, and Wix Payments, as well as a suite of vertical-specific applications and complementary services.

The firm generates revenue primarily through premium subscriptions, value-added services, and payment processing fees, leveraging a freemium model to convert registered users into paying customers.

It serves individuals, small businesses, and enterprises globally, with a focus on users seeking accessible website development and business management tools.

Wix.com is a leading provider of cloud-based website development and business management solutions, supporting millions of users worldwide. The company’s scalable platform and broad suite of integrated tools position it as a key enabler for digital presence among small businesses and entrepreneurs. Its freemium-to-premium conversion strategy, combined with ongoing product innovation, underpins its competitive advantage in the website infrastructure market.

Wix stock has really suffered recently, tumbling over 50% this past year, and the firm’s latest results give both bulls and skeptics something to work with. Fourth-quarter revenue climbed 14% year over year to $524 million, while bookings rose 15% to $535 million. Meanwhile, total ARR reached $1.84 billion, up 14% from a year earlier. Wix is also leaning heavily into AI products like Harmony and Base44, which management says recently crossed $100 million in ARR only one year after launching.Importantly, this is not a company burning cash to chase growth at any cost. Wix generated $573 million in free cash flow in 2025 and repurchased $575 million worth of shares during the year. With that in mind, this buy ultimately looks like a conviction bet on a turnaround story that the broader market still does not fully trust. After losing more than half its value over the past year, Wix has become one of those names where investors have to decide whether the AI push is hype or the start of a much bigger platform shift.

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group, Rimini Street, and Wix.com. The Motley Fool recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group and short January 2027 $46.25 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.

What This $3.9 Million Wix Buy Could Mean After the Stock's 54% Collapse was originally published by The Motley Fool