Exploring Wix.com Ltd. (WIX) Investor Profile: Who’s Buying and Why?

You're looking at Wix.com Ltd. (WIX) and wondering if the big money is still on the sidelines or actively betting on the platform's future, right? The direct takeaway is that institutional conviction remains exceptionally high, and they are buying into a clear growth narrative driven by AI and profitability. Honestly, when you see institutional ownership sitting at nearly 87.91% as of late 2025, it tells you the smart money is already deeply entrenched, but the why is what matters now. Firms like BlackRock, Inc. hold massive positions, and they aren't just holding; they are reacting to a business that is guiding for a full-year 2025 revenue outlook of $1.97 billion to $2.00 billion, plus projecting $590 million to $610 million in Free Cash Flow (FCF). That kind of cash generation and scale-plus a 14% year-over-year increase in Q3 2025 total bookings to $515 million-is defintely what keeps the major players confident in this SaaS story. So, are you positioned to benefit from the same drivers that are attracting these multi-billion-dollar funds?

Who Invests in Wix.com Ltd. (WIX) and Why?

You're looking at Wix.com Ltd. (WIX) and trying to figure out who is driving the stock, and honestly, it's a story dominated by the big money. The direct takeaway is that Wix is overwhelmingly an institutional favorite, with nearly 88% of the shares held by professional money managers who are betting heavily on the company's aggressive pivot into AI-driven development.

Institutional investors-the mutual funds, pension funds, and major asset managers like BlackRock, Inc.-hold a massive stake, totaling 59,081,275 shares as of the most recent filings. This high institutional ownership, sitting at about 87.91%, means that the stock's movement is less about individual retail investors and more about the strategic decisions of these large, often long-term, holders. We saw 780 different institutional owners in the last quarter, with the majority being 'long-only' funds, which is a classic sign of growth investing.

Here's the quick breakdown of the key investor types:

• Mutual Funds: They are the largest block, often seeking long-term growth for their fund shareholders.
• Hedge Funds: These are more active, with some taking long positions (buying) and a smaller number taking short positions (betting against the stock), indicating a split view on near-term volatility.
• Asset Managers: Firms like Ameriprise Financial Inc. and Wellington Management Group Llp are among the largest holders, demonstrating a conviction in the company's multi-year strategy.

The Core Investment Motivations: Growth and AI

The primary attraction for investors right now isn't dividends-Wix doesn't pay one-it's pure, unadulterated growth potential, specifically tied to their new AI platform, Base44. They are willing to overlook the GAAP net loss of $0.6 million in Q3 2025 because the non-GAAP net income was a strong $100.2 million. That's a classic growth-stock trade-off: sacrifice short-term accounting profit for long-term market dominance.

The market is focused on the acceleration of the top line. Wix reported Q3 2025 total revenue of $505.2 million, a 14% year-over-year jump. The full-year 2025 revenue outlook was raised to between $1.99 billion and $2.00 billion, which signals management's confidence. The real kicker is Base44, which is on track to hit at least $50 million in Annual Recurring Revenue (ARR) by the end of 2025, proving the AI product is gaining traction fast. This AI-driven expansion into the 'vibe coding' space is the new growth narrative that has the big funds buying in. If you want a deeper dive into the numbers, you should check out Breaking Down Wix.com Ltd. (WIX) Financial Health: Key Insights for Investors.

The near-term risk, which is why the stock saw a sharp drop post-earnings, is the margin pressure from these very AI investments and accelerated marketing spend, which pushed non-GAAP operating expenses to about 50% of revenue for the full year. Investors are watching that closely. Still, the company's forecast of approximately $600 million in free cash flow (FCF) for 2025 is a powerful testament to their underlying business health.

Investment Strategies in Play

The strategies used by investors in Wix.com Ltd. are a mix, but they lean heavily toward long-term growth and opportunistic value buying, especially after market pullbacks. The high institutional ownership is the clearest indicator of a long-term holding strategy, where funds are buying based on the multi-year outlook for the Base44 platform and the overall shift to digital presence for small businesses.

However, the most recent quarter showed significant activity, indicating a degree of active management and short-term trading. While 226 institutions added to their positions, 270 decreased them. This isn't a consensus trade; it's funds rebalancing or taking profits. For example, Ameriprise Financial Inc. dramatically increased its position by adding 2,606,204 shares in Q3 2025, while others like FMR LLC removed a large block of shares. That's active portfolio management at work.

A less obvious strategy is value investing within the growth sector. The stock's Price-to-Earnings (P/E) ratio of 36.69 and Price-to-Sales (P/S) ratio of 3.35 are both near their two-year lows, suggesting that some investors see a compelling entry point for a company still growing at a 14% clip. Plus, the company's own action of executing $175 million in share repurchases in Q3 2025 is a clear signal of management's view that the stock is undervalued, a move that defintely appeals to value-oriented shareholders.

Institutional Ownership and Major Shareholders of Wix.com Ltd. (WIX)

If you are looking at Wix.com Ltd. (WIX), the first thing to understand is that institutional money essentially controls the stock. This isn't a retail-driven story; it's a battleground for major funds. As of November 2025, institutional investors own a massive 87.91% of Wix.com Ltd.'s stock, which gives them substantial influence over the company's direction and share price.

This high level of institutional ownership-nearly nine out of every ten shares-signals a strong degree of credibility within the professional investment community. It means that hundreds of funds have done their due diligence and decided Wix.com Ltd. is a viable long-term holding. However, it also means the stock's volatility is often dictated by the coordinated buying or selling of these giants.

Top Institutional Investors: Who Holds the Keys?

The institutional ownership base is concentrated, with a handful of asset managers holding the largest stakes. This concentration means that a small group of firms holds significant sway. For instance, the top 18 shareholders alone hold over 50% of the entire business. These are the firms whose decisions you need to watch.

Based on the most recent filings for the 2025 fiscal year, the largest holders are a mix of growth-focused managers and passive index funds. Here is a snapshot of the top institutional positions, with data reported as of late Q3 2025:

Notice BlackRock, Inc. and Wellington Management Group LLP are both top holders, reflecting the stock's inclusion in major indices and its appeal to active managers. The total institutional value long position was approximately $9.6 billion USD.

Recent Shifts: Are Funds Buying or Selling?

The near-term trend in institutional ownership is an important signal. During the third quarter of 2025, total shares owned by institutions in Wix.com Ltd. actually increased by 5.29%, totaling 58,981K shares. This is a strong vote of confidence, especially following the company's robust Q3 2025 results driven by its new AI-powered platform, BASE44.

However, the picture is nuanced. While the overall share count rose, it was driven by aggressive buying from some and significant selling from others. You need to look past the aggregate number to see the real action:

• Ameriprise Financial Inc. added 2,606,204 shares in Q3 2025, an increase of 128.3%.
• Wellington Management Group LLP added 1,609,989 shares, a massive increase of 90.4%.
• Conversely, Lone Pine Capital LLC removed 2,161,331 shares, completely eliminating their position (-100.0%).
• FMR LLC also removed 2,347,439 shares, reducing their stake by 80.0%.

This tells you the investment thesis is polarizing. Some major funds are conviction buyers, while others are exiting entirely. It's a classic case of rotation, not a unanimous retreat. The fact that the total number of funds reporting positions increased by 10 in the last quarter suggests new players are still entering the game. For more context on the company's fundamentals, check out Wix.com Ltd. (WIX): History, Ownership, Mission, How It Works & Makes Money.

The Impact of Institutional Clout on WIX

The role of these large investors is critical. They don't just hold the stock; they influence its trajectory and the company's strategic choices. When institutions own nearly 88% of a company, their collective opinion is what moves the stock price, not the individual investor.

For Wix.com Ltd., this influence manifests in a few key ways. First, their buying power provides crucial liquidity and a floor for the stock price. Second, their sheer size means they can and do exert influence on management and the Board of Directors, often pushing for greater capital efficiency or clearer profitability timelines. The high institutional ownership also means the stock's beta of 2.45-indicating high volatility relative to the market-can be amplified. If a few large holders decide to sell simultaneously, the price drop can be swift and severe. That's the risk you defintely have to price in.

On the positive side, the current fund sentiment, as measured by a put/call ratio of 0.51, indicates a generally bullish outlook, suggesting that the institutional money is betting on continued upside from the company's focus on its AI-driven growth initiatives. This is a clear signal that the smart money believes in the current strategy.

Key Investors and Their Impact on Wix.com Ltd. (WIX)

You want to know who is betting big on Wix.com Ltd. (WIX) and how their moves affect your investment; the direct takeaway is that institutional giants like BlackRock, Inc. and Wellington Management Group LLP anchor the stock, but recent, sharp movements by hedge funds show a clear split on the company's aggressive, margin-pressuring AI investment strategy.

Wix.com Ltd. (WIX) is overwhelmingly owned by institutional money, which means the collective decisions of major funds-not retail investors-drive the stock price. As of the latest September 2025 filings, these institutions hold a significant portion of the company's outstanding shares. This high institutional ownership, which often exceeds 85%, provides a stability layer, but it also means large block trades can create volatility in a hurry. You need to watch the 13F filings closely.

The biggest players are the long-term, passive giants, the kind of investors who hold for decades. Here are the top institutional holders as of the end of Q3 2025:

• Wellington Management Group LLP: Holds 3,460,299 shares, representing a 6.21% stake.
• BlackRock, Inc.: Holds 3,337,536 shares, a 5.99% ownership.
• Baillie Gifford & Co.: Holds 2,892,145 shares, or 5.19% of the company.

These firms, including others like Ameriprise Financial Inc. and Acadian Asset Management LLC, act as vital governance monitors. They engage with management on everything from capital allocation-like the recent $200 million share repurchase authorization-to strategic direction, especially concerning the new AI-powered platform, Base44. Their support is defintely crucial for major shifts in business strategy. Wix.com Ltd. (WIX): History, Ownership, Mission, How It Works & Makes Money is a good place to check out the company's foundation.

Recent Investor Moves and the AI Investment Trade-Off

The most telling moves in Q3 2025 highlight a divergence in how sophisticated investors view the company's aggressive push into artificial intelligence. The market is split on whether the near-term margin hit is worth the long-term gain from Base44.

Here's the quick math: Wix.com Ltd. (WIX) reported Q3 2025 revenue of $505.2 million, a 14% year-over-year increase, but the increased spending on AI compute resources and marketing for Base44 put pressure on margins. The full-year 2025 Free Cash Flow is still expected to be strong at approximately $600 million, or 30% of revenue, but that's a lower margin than some investors expected.

This uncertainty led to some sharp position changes in the third quarter of 2025:

• Lone Pine Capital LLC removed its entire stake of 2,161,331 shares, a -100.0% reduction.
• FMR LLC (Fidelity) also made a large reduction, removing 2,347,439 shares, an -80.0% change.
• Ameriprise Financial Inc., conversely, showed massive conviction by adding 2,606,204 shares, a +128.3% increase in their portfolio.
• Citadel Advisors LLC added 886,902 shares, a staggering +429.8% increase.

The hedge funds are either completely selling out, betting the investment costs will hurt too much, or aggressively buying, betting the Base44 platform-which is on track to achieve at least $50 million of Annual Recurring Revenue (ARR) by year-end 2025-will be a massive growth driver. This is a classic growth vs. profitability debate playing out in real-time. The company's own action, repurchasing about 1.3 million shares for $175 million in Q3 2025, signals management believes the stock is undervalued at its current market cap of roughly $5.36 billion.

The key for you is to decide which side of this trade-off you land on. The stock is volatile; it had a 17.2% drop following the Q3 2025 earnings release, showing how sensitive the price is to the profitability narrative. Your action should be to model the impact of the full-year 2025 revenue outlook of $1.99 billion to $2.00 billion against the elevated operating expenses, which are expected to be approximately 50% of revenue for the full year.

Market Impact and Investor Sentiment

You want to know who is buying Wix.com Ltd. (WIX) and why, especially given the recent stock volatility. The quick answer is that institutional money is still bullish, but selectively. As of late 2025, the overall fund sentiment is a clear Buy or Outperform, yet the market is punishing the stock for its aggressive spending on its new AI-powered platform, Base44.

Institutional ownership is robust, sitting at nearly 88% of the company's stock. This high concentration means the big players-the mutual funds and hedge funds-control the narrative. Importantly, the put/call ratio for WIX is around 0.51 as of November 2025, which is a strong technical signal indicating a bullish outlook from options traders.

We're seeing a classic divergence: the long-term investors are accumulating, while the short-term market is reacting to near-term margin pressure. For a deeper dive into the company's foundation, check out Wix.com Ltd. (WIX): History, Ownership, Mission, How It Works & Makes Money.

Investor Sentiment: Big Money is Accumulating

Honesty, the major shareholders are signaling a positive long-term view through significant accumulation in the 2025 fiscal year. Ameriprise Financial, for example, dramatically increased its position by 56.19%, now holding 4.638 million shares, making them a top owner. Wellington Management Group Llp also boosted its share count by 47.48%.

This accumulation suggests these seasoned investors believe the company's pivot to its AI-driven platform, Base44, will pay off handsomely, even if it hurts margins today. They are buying the future revenue stream. Here's a look at the top institutional activity:

• Ameriprise Financial: Increased holdings by 56.19%.
• Wellington Management Group Llp: Increased holdings by 47.48%.
• Woodline Partners LP: Bought a massive additional 130,440 shares in Q3 2025.

BlackRock, Inc. also remains a key stakeholder, which is typical for a large-cap tech name, but the recent aggressive buying from active managers like Ameriprise and Wellington is the real story here. They're betting on the execution of the new strategy.

Recent Market Reactions: The Cost of Innovation

The stock market has been volatile, reflecting investor anxiety over growth spending versus immediate profitability. In early October 2025, the stock plummeted 13.4% following the announcement of a $1 billion upsized convertible notes offering. That's a huge drop, and it shows the market's immediate fear of share dilution, even if the capital is for strategic growth.

More recently, in November 2025, the stock fell approximately 14% despite a strong Q3 2025 earnings beat-revenue hit $505 million and total bookings reached $515 million. The sell-off was triggered by the revised full-year guidance: management lowered the non-GAAP gross margin outlook to 68% to 69% (from 69%) and increased the non-GAAP operating expense forecast to 50% of revenue. They are spending big to push Base44, and the market doesn't like the near-term margin hit. It's a classic growth stock trade-off.

Analyst Perspectives: The Bullish Consensus with a Caveat

The analyst community maintains a consensus rating of Moderate Buy or Outperform. The average one-year price target is around $212.83 per share as of November 2025, suggesting a huge potential upside of about 67.69% from the recent closing price of $126.92.

Still, you need to read the fine print. While the rating remains positive, many firms have recently cut their price targets. For instance, Evercore ISI lowered its target from $250.00 to $160.00, and B of A Securities adjusted theirs from $210.00 to $170.00. This isn't a sign of a broken company, but a realistic recalibration of the timeline for the Base44 platform to fully monetize.

The core belief is that the investment in AI, which is expected to drive the full-year 2025 revenue to between $1.99 billion and $2 billion, will eventually translate into significant free cash flow-projected at about $600 million for 2025.

The analysts are saying the long-term thesis is intact, but the short-term path is bumpier. That's why the stock is trading near its 1-year low, which management itself seems to see as undervalued, authorizing a $200 million share repurchase program. You've got to weigh the long-term growth story against the near-term capital expenditure (CapEx) risk.