Shares of Wix.com (NASDAQ:WIX), a leading cloud-based platform for building websites, were slammed on Monday. The stock finished the trading day down 12%.
The stock's decline was fueled by a broader market sell-off, especially among tech stocks.
The market took a hit Monday, with the S&P 500 falling about 1.5%. Highlighting how tech stocks were hit harder, the tech-heavy Nasdaq Composite saw an outsize decline of 2.7%. This extends a period since the beginning of October in which tech stocks have been sliding as investors seem to be reassessing growth assumptions for the sector and paring back on the amount of risk they are willing to take.
High-growth tech stocks like Wix have been hit particularly hard recently. Wix is down 26% since Oct. 1. The Nasdaq composite is down about 13% during this same timeframe.
Amid this market turbulence, it's worth taking some time to acknowledge the underlying fundamentals of the companies getting hit the hardest.
Last week, Wix reported strong revenue growth of 40% year over year. In addition, the company's free cash flow was up 25% since the year-ago quarter. Looking ahead, Wix raised its outlook for full-year revenue to $601 million to $602 million, up from a previous forecast for revenue between $597 million and $599 million.