Wix.com Ltd. Notice of September 22, 2026 Application Deadline for Class Action Lawsuit - Contact Reed Kathrein at Hagens Berman Sobol Shapiro LLP Before Application Deadline

Global web development platform company Wix faces increasing competitive challenges posed by vibe coding, a software development trend where a person builds apps or websites by giving plain-language instructions to an AI rather than writing code line-by-line. To confront this challenge, Wix positioned AI initiatives, Base44 and Harmony, as its two-pillar response to the vibe coding trend threatening the company's core business. The company has provided numerous assurances to investors, including that "We expect innovation-driven growth to be accompanied by high impact but disciplined investments to fully unlock the market opportunity ahead for both Wix and Base44." In addition, Wix has emphasized "Early Wix Harmony performance is better than expected, with improved conversion and monetization[,]", and "Together, Wix Harmony and Base44 open up the world of what's possible on Wix." The complaint alleges that Wix made false and misleading statements while failing to disclose that, with respect to its AI product offerings, Wix overstated their competitiveness and performance, understated the costs associated with developing and promoting them and, accordingly, overstated their commercial and financial benefits. Investors began to learn the truth on May 21, 2025, when Wix provided 2025 revenue guidance falling short of analyst expectation and fueling concerns about the company's competitiveness. Then, on November 19, 2025, Wix reported its Q3 2025 results indicating rising post-Base44-acquisition costs (AI compute and marketing) were having a material negative impact on its financial results. Each of these triggered sharp selloffs in the price of the stock and triggered analyst downgrades on concerns over core business growth deceleration, increasing costs, and competitive positioning. Finally, on May 13, 2026, Wix revealed aggressive and front-loaded AI compute expenses for Harmony and Base44. More specifically, the rapid expansion of Base44 and Harmony rollout radically altered Wix's cost structure primarily through front-loading sales and marketing ("S&M") expenses. Collectively, the initiatives drove non-GAAP S&M expenses to $190.7 million, a year-over-year 88% increase that caused the company's non-GAAP operating margin to collapse from 21% during the prior year period to just 5% while sending its quarterly operating expenses up 46% from the prior year period. During the earnings call that day, management acknowledged that professional development customers were using competing AI tools, the Harmony platform had "holes" and "missing capabilities", and there had been delays in delivering product updates and innovation to professional developer customers resulting in Wix falling behind their workflows and needs. The market swiftly reacted that day, scalping over $1.1 billion from Wix's market capitalization and prompting analysts' surprise over the magnitude of the ...