Shares of Wix.com (NASDAQ:WIX) fell 13.5% in September, according to data provided by S&P Global Market Intelligence, as investors began selling off tech stocks during the month, cashing in on gains made earlier in the year.
Wix, the cloud-based web development company, has seen its stock jump by as much as 145% this year, as investors flocked to tech stocks at the beginning of the pandemic. Investors have focused their attention on companies that they think can help businesses adapt to lockdowns and stay-at-home restrictions.
But at the beginning of September, tech investors abruptly turned on the tech sector and began selling their shares. The sell-off appears to have been a result of investors wanting to take some of the gains that they had made over the past few months. Wix's stock fell along with many tech stocks, but it's important to note that there wasn't any company-specific news that caused Wix's shares to drop.
Wix has gained back most of its September losses in October, as the stock has risen 9.6% so far this month. But investors should expect additional market instability in the coming months. Some investors have been quick to buy and sell stocks based on the daily news, which has brought a lot of volatility considering the U.S. is dealing with a pandemic, a presidential election, and 8% unemployment. All this means that Wix investors should stay the course with their investment, as long their initial investing thesis hasn't changed.