Citi analyst Ygal Arounian has revised the price target for Wix.com, reducing it from $280 to $238, while maintaining a Buy rating on the shares. This adjustment comes as part of a broader assessment of the internet sector ahead of the company's first-quarter review. The changes reflect anticipated impacts from tariffs and a potentially softer macroeconomic landscape.
The analysis highlights that digital advertising and e-commerce sectors could feel the brunt of tariff effects, whereas web builders, small business tools, and online dating platforms are expected to be less affected. According to Arounian, companies like VeriSign (VRSN), Wix.com (WIX, Financial), GoDaddy (GDDY), eBay (EBAY), and Criteo (CRTO) are perceived as more resilient with robust underlying fundamentals.
Conversely, the report suggests that companies such as Wayfair (W), Trade Desk (TTD), Etsy (ETSY), and Bark (BARK) are likely to be more vulnerable to tariff impacts, making them less defensive in the current economic climate. Investors are advised to consider these differences when evaluating potential risks and opportunities within the sector.
