Wix shares plunged 27% after the company reported a Q1 net loss of $57.5M despite a 14% revenue increase to $541M, dragging its market value down to around $3B, one of the lowest levels in its history and just a month after completing an unusual $1.6B share repurchase program. The company attributed the loss to sharply higher marketing and sales expenses (including two Super Bowl commercials) and additional payments tied to the Base44 acquisition agreement with founder Maor Shlomo, who received another $38M during the quarter, with more milestone payments likely later this year. Base44, Wix’s AI “vibe coding” platform acquired last year, reached $150M annual recurring revenue in May ahead of internal targets, but heavy spending on Base44 expansion and a proprietary AI model to improve Wix’s Harmony website builder has rattled investors who fear traditional website building could become less relevant as AI tools generate sites automatically.
