Wix.com (WIX) 27% Drop Prompts Investor Scrutiny - HBSS Investigating Unanticipated Spike in Operating Expenses

Wix.com shares plunged 27% on May 13, 2026, wiping out more than $1.1 billion of market capitalization after Q1 2026 results showed a 46% year-over-year rise in operating expenses and questions about the company’s ability to defend its core business. HBSS, a national shareholder rights firm, opened an investigation into whether Wix misled investors about its spending and if federal securities laws were violated. Wix also faced AI disruption concerns as it races to defend its moat with Base44 and Harmony, front-loading AI compute costs. Non-GAAP S&M expenses rose to $190.7 million, up 88% YoY, while non-GAAP operating margins collapsed to 5%.