Shares of Wix.Com Ltd (NASDAQ:WIX) tanked in early trading on Thursday, after the company Wednesday reported downbeat first-quarter results.

Here are the key analyst insights:

RBC Capital Markets analyst Brad Erickson downgraded the rating from Outperform to Sector Perform, and cut the price target from $90 to $60.

Cantor Fitzgerald analyst Deepak Mathivanan reiterated an Overweight rating, while slashing the price target from $110 to $70.

Needham analyst Bernie McTernan maintained a Buy rating, while reducing the price target from $115 to $80.

Check out other analyst stock ratings.

RBC Capital Markets: Wix results reflected challenges, highlighting concerns around consumers increasingly shifting to AI tools from traditional web design. The Base44 acquisition seemed to align with this trend, Erickson said.

But RBC “underestimated the sustained margin compression this would cause," he added.

Base44 is growing fast, but this has come with high marketing spend and compute costs, the analyst stated. The company expects partner weakness to continue, with agencies facing headwinds from "vibe ...