Analysts Bash Wix.com Following Mixed Q2 Results

Raymond James analyst Aaron Kessler downgraded Wix.com Ltd WIX to Market Perform from Outperform and removed his last $300 price target after the company reported mixed Q2 earnings. Wix pointed to slowing sub growth since mid-May, he states.
Kessler predicts that the uncertainty to continue in the second half due in part to COVID. He thinks it is increasingly looking like 2020 pulled forward meaningful demand and that sub growth may now return to more normalized levels.
KeyBanc analyst Josh Beck downgraded Wix.com to Sector Weight from Overweight. Beck notes that Wix beat Q2 on revenue but missed on the closely watched collections metric.
Unforeseen pandemic developments introduce uncertainty amongst consumers/SMBs impacting conversion and new traffic, Beck contended.
While his June 2020 commerce/partner upgrade thesis remains intact, and he remains constructive on the management team and strategy, Beck is moving to the sidelines on reduced visibility prospects.
Price Action: WIX shares traded lower by 0.90% at $213.89 on the last check Thursday.