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Why One Fund Bought Wix Stock Despite a 53% Drop Over the Past Year

The Motley Fool • Dec 25, 2025 3:36pm (New York) •By Jonathan Ponciano

Why One Fund Bought Wix Stock Despite a 53% Drop Over the Past Year

Elwood Capital Partners increased its Wix position by 17,710 shares in Q3, bringing its total holding to 40,033 shares valued at $7.11 million (4.34% of AUM). Despite Wix stock falling 53% over the past year, the fund sees value in the company's strong fundamentals: Q3 revenue grew 14% YoY to $505 million, free cash flow reached $127 million (25% of revenue), and the AI-driven Base44 product is expected to generate at least $50 million in ARR by year-end.

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Insights

WIX positive

Despite significant stock price decline (-53% YoY), the company demonstrates strong operational fundamentals with 14% YoY revenue growth, robust free cash flow of $127 million (25% of revenue), and promising AI product (Base44) expected to generate $50M+ ARR by year-end. Institutional fund buying signals confidence in long-term value.

Keywords

#Wix stock decline #institutional investment #cash flow generation #AI product growth #value investing #sentiment vs fundamentals

Tickers

WIX AMZN MSFT

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