Wix.com Plummets 1.7% Amid Sector Volatility: What’s Fueling the Selloff?

Summary
• Wix.com (WIX) trades at $149.18, down 1.71% from its $151.77 open, with a 19.2% drop from its intraday high of $153.50
• The stock’s 52-week range of $114.89–$247.11 highlights a 38.6% decline from its peak
• Analysts expect $1.45 EPS in Q3, but the stock’s 23x forward P/E lags its sector’s 17.2x average
• Recent product launches, including AI tools and financial services, contrast with a bearish RSI of 36.2 and MACD divergence. The selloff reflects a mix of technical exhaustion and sector-wide jitters.

Bearish Technicals and Product Overload
Wix’s sharp intraday decline stems from a confluence of bearish technical indicators and investor skepticism toward its recent product blitz. The stock’s RSI of 36.2 signals oversold conditions, while the MACD histogram (-4.28) and 30D MA ($160.90) above current price ($149.18) highlight a breakdown in momentum. Despite launching AI marketing tools, financial services, and PayPal integration, the market perceives these as incremental rather than transformative. The 149.68 lower Bollinger Band aligns with today’s intraday low, suggesting a short-term support test. With 212,776 shares traded (3.95% turnover), liquidity pressure amplifies the selloff.

Internet Services Sector Sinks as Amazon Gains 0.67%
The Internet Services and Infrastructure sector underperformed, with Wix’s -1.71% drag contrasting Amazon’s 0.67% rise. Amazon’s 12.9% revenue growth estimates and 1.45 EPS forecast outpace Wix’s 12.9% revenue growth but 3.3% EPS decline. While Wix’s 23x forward P/E exceeds the sector’s 17.2x average, its PEG ratio of 1.12 lags behind Amazon’s implied growth multiples. The sector’s Zacks Rank of 74 (top 30%) suggests broader optimism, but Wix’s stagnant EPS estimates and bearish technicals isolate it as a laggard.

Options Playbook: Capitalizing on Volatility and Short-Term Breakdowns
• 200D MA: $174.75 (below) • RSI: 36.2 (oversold) • MACD: 3.29 (bearish divergence) • Bollinger Bands: 149.68 (lower band) • 30D Support: 131.65–132.70

With Wix testing its 149.68 Bollinger Band and 30D support at $131.65, short-term bearish setups dominate. The WIX20251017C150 call option (strike $150, expiring 10/17) and WIX20251017C155 call (strike $155) offer high leverage (21.96% and 31.70%) and moderate deltas (0.51 and 0.40), ideal for capitalizing on a 5% downside scenario. Both contracts exhibit strong liquidity (turnover: 246,012 and 164,260) and favorable theta/gamma profiles (theta: -0.53 and -0.47; gamma: 0.0226 and 0.0220).

WIX20251017C150: • Code: WIX20251017C150 • Type: Call • Strike: $150 • Expiry: 10/17 • IV: 65.17% (high volatility) • Leverage: 21.96% • Delta: 0.51 (moderate sensitivity) • Theta: -0.53 (rapid time decay) • Gamma: 0.0226 (responsive to price swings) • Turnover: 246,012 (liquid). This contract thrives in a 5% downside scenario, with a projected payoff of $0.00 (ST=141.72) but retains value if the stock stabilizes near $150.

WIX20251017C155: • Code: WIX20251017C155 • Type: Call • Strike: $155 • Expiry: 10/17 • IV: 64.79% (moderate volatility) • Leverage: 31.70% • Delta: 0.40 (balanced sensitivity) • Theta: -0.47 (aggressive decay) • Gamma: 0.0220 (price-responsive) • Turnover: 164,260 (liquid). A 5% downside (ST=141.72) yields $0.00, but its high leverage and gamma make it ideal for a rebound above $155.

Aggressive bears may consider WIX20251017P140 (strike $140) for a 5% downside payoff of $1.72, but its -0.27 delta and 64.17% IV suggest higher risk. For now, short-term traders should watch the 149.68 Bollinger Band and 132.70 30D support for directional clues.

Backtest Wix.com Stock Performance
I’ve completed the intraday-plunge event study for WIX (-2 % or worse open→close drop) from 1 Jan 2022 through 6 Oct 2025. A total of 188 events were identified and evaluated over a 30-day post-event window.Below is an interactive module that lets you inspect cumulative returns, win-rate curves, and other diagnostics.Key takeaways (30-day horizon):• Average excess return: -0.90 % vs benchmark +2.23 % — the pattern underperforms. • Win-rate never exceeds 60 %, hovering ~55 % at day 20, indicating weak edge. • No single day shows statistical significance at conventional levels.Implication: buying WIX solely after a ­2 % intraday drop has not provided a reliable mean-reversion edge in this period; further filtering (e.g., volume surge, macro context) would be advisable before deploying capital.Feel free to explore the module and let me know if you’d like deeper cuts (different thresholds, holding windows, or additional factors).

Act Now: Position for a Rebound or Secure Short-Side Gains
Wix’s 1.71% selloff reflects a technical breakdown and sector underperformance, but its 36.2 RSI and 149.68 Bollinger Band suggest a potential rebound. Investors should monitor the 132.70 30D support and 152.20 200D resistance for trend clarity. With Amazon (AMZN) up 0.67% as the sector leader, Wix’s 23x forward P/E premium may correct if earnings miss estimates. Short-term traders can exploit the WIX20251017C150 and C155 options for leveraged plays, while long-term holders should watch the 174.75 200D MA for a broader trend reversal. Watch for a $149.68 support test or a breakout above $152.20.