Wix.com reported quarterly earnings of $2.28 per share, beating expectations of $1.75. Last year, earnings were $1.67 per share. This quarter’s earnings exceed expectations by 30.29%, though last quarter’s surprise was a negative 6.63%. Over the past four quarters, Wix.com has exceeded consensus EPS estimates three times. For the quarter ending June 2025, Wix.com earned $489.93 million in revenue, which is higher than the projected $487.54 million. Revenue last year was $435.75 million. The company has also exceeded revenue estimates three times in the last four quarters. Since early 2023, Wix.com shares have fallen by 40.3%, while the S&P 500 has increased by 7.1%. The future movement of Wix.com’s stock may depend on management comments during earnings calls. Currently, the company’s shares hold a Zacks Rank of #3 (Hold), which means they likely follow market trends. The forecast for the next quarter’s EPS is $1.83, with revenue expected to be $502.1 million. For the current fiscal year, the projected EPS is $7.13, with total revenue of $1.98 billion. In the same field, Realbotix Corp. expects to report no change in its quarterly loss and forecasts $0.8 million in revenue, which would be a 158.1% increase from last year. As of August 6th, 2025, Wix.com has released a strong earnings report, exceeding expectations for both profit and revenue. This shows solid operational performance over the past year. However, we should be cautious because the stock has struggled significantly since early 2023. The stock’s drop of over 40%, while the S&P 500 has risen, is mainly due to market fears about new AI-native competitors that gained traction in 2024. We’ve also seen signs of slowing premium subscriber growth in the competitive North American market. These factors make traders hesitant to expect a strong and sustained rally based on this good news. As a result, there is high implied volatility in the options market for Wix. Before this announcement, implied volatility was around 55%, indicating that the market expected a big move but was unsure about the direction. This makes buying options risky and expensive at this time. For those who think this positive report could push the stock upward, we should explore strategies that limit our costs. A bull call spread, where we buy a call with a September expiration and sell a higher-strike call against it, could help us capture potential gains while controlling risk. This strategy is wiser than simply buying a long call, given the stock’s history of declining after good news. Alternatively, we might see this as a chance to profit from the high volatility, betting that the stock won’t crash but also won’t rise significantly. Selling a slightly out-of-the-money put option for the coming weeks could be a smart move. This allows us to collect a good premium, based on the belief that post-earnings movement will be sideways or mildly positive. We also need to consider the company’s guidance, which predicts a slight dip in earnings per share for the next quarter. This, along with the neutral #3 (Hold) rating, suggests that the market may absorb this good news without a major breakout. Therefore, we should manage any positions we take carefully over the next few weeks as the initial excitement fades.

here to set up a live account on VT Markets now