Wix shares plunge 27% after Q1 2026 report reveals 46% rise in operating costs and AI spending concerns.

Wix.com shares dropped 27% on May 13, 2026, wiping out over $1.1 billion in market value after the company reported a 46% year-over-year increase in operating expenses driven by heavy AI-related investments. The surge in costs, especially in sales and marketing for AI initiatives Base44 and Harmony, caused the operating margin to fall sharply from 21% to 5%. This unexpected financial hit raised doubts about Wix's ability to sustain its core business amid AI disruption. Shareholder rights firm Hagens Berman has launched an investigation into whether Wix misled investors about these expenses and potential securities law violations.