Activist Investor Fund Starboard Procures Stake In Wix

Starboard Value LP disclosed a 9% stake in the website development platform Wix.com Ltd WIX.
Starboard had been building the stake and spoke to Wix about how it could improve operations, Reuters reports.
Wix battled losses since the fourth quarter of 2021 amid a slowdown in e-commerce driven by rampant inflation and lower online spending in the wake of the pandemic.
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Wix reported second-quarter FY22 revenue growth of 9% year-on-year to $345.2 million, beating the consensus of $344.4 million. Non-GAAP EPS loss was $(0.14) versus $(0.28) a year ago.
Wix sees Q3 revenue to grow 7% - 8% Y/Y to $341 million - $345 million (consensus $354.53 million). The company cut the FY22 revenue growth rate to 8% - 10% Y/Y from 10% - 13% Y/Y.
Wix adopted a three-year cost-cutting program to boost its ailing stock price.
Starboard supports Wix's bid to become profitable and believes the company has a significant opportunity to improve its margins and grow further.
Price Action: WIX shares traded higher by 5.92% at $78.05 in the premarket on the last check Monday.
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