Wix.Com (WIX.US) shares fell more than 7.0% on Monday after software company posted mixed quarterly figures.
- Firm which provides cloud-based web development services reported wider than expected quarterly loss of 0.72 cents per share, well above analyst estimates of 0.60 cent per share. On the other hand, revenue of 341.6 million beat Wall Street estimates of 340,4 million.
- Continued execution of long-term strategy illustrated by increased revenue generated through partners in first quarter of $82 million, rose 41% YoY, while transaction revenue jumped to $36.6 million, an increase of 24% YoY.
- Company continues to experience a high level of volatility in demand due to macroeconomic headwinds and global uncertainty.
- Wix forecasts revenue in the region $342 – $346 million in the second quarter, 8 – 10% YoY increase. This estimates take into account $0.6 million loss from closure of its Russia operations and a $4 million headwind from YoY changes in foreign exchange rates.
- “Wix has remained focused on executing on our long-term opportunities, our product and marketing roadmaps, and concentrating on what we can control despite the recent months of instability and volatility,” said Avishai Abrahami, Wix co-founder and CEO.
Wix.Com (WIX.US) stock fell over 80.0% from its all-time high similar amid negative sentiment towards tech stocks. Downward move was halted around $56.70 level and price launched shy recovery move at the end of last week, however weak quarterly earnings provided more fuel for the bears. If current sentiment prevails, price may revised the aforementioned support. On the other hand, if buyers manage to regain control, then upward move may accelerate towards local resistance zone around $88.50 which is marked with upper limit of the 1:1 structure, 78.6% Fibonacci retracement of the last upward wave, and upper boundary of descending channel. Source: xStation5
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