Please ensure Javascript is enabled for purposes of website accessibility

Why Wix Stock Tumbled 13% Last Month

By Chris Neiger – Oct 8, 2020 at 3:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Wix's stock fell along with many other tech stocks.

What happened

Shares of Wix.com (WIX 1.77%) 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. 

So what 

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.

A red and green line graph on a black background

Image source: Getty Images.

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. 

Now what 

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.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Wix.com. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Wix.com Stock Quote
Wix.com
WIX
$86.36 (1.77%) $1.50

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.