Activist company

Wix Stock Jumps After Starboard Value’s 9% Stake in the Company

Shares of Wix are soaring after activist investor Starboard Value disclosed its 9% stake in the company.

Video transcript

[AUDIO LOGO]

SEANA SMITH: Well, my game today is WIX, the top Trending Ticker, one of the Top Trending tickers here on Yahoo Finance. Shares are soaring, up around 15% on activist investor Starboard Value revealing a 9% stake in the company. Reuters reports that Starboard is in talks with the web platform company on how it can improve operations.

They believe the business can become profitable and significantly improve their margins. I think they just have something to say about how they go about it. But WIX has certainly struggled so far this year. Share about 47% since the beginning of the year. Of course, Dave, this coincides with the slowdown that we’ve seen more broadly in the tech space, more specifically also in the e-commerce space. So it will be interesting to see what steps WIX takes to raise the bar here with its business.

DAVE BRIGGS: I have a good reason to root WIX. Digging a bit on their chief operating officer and president, a former commander in the Israeli navy. They are an Israel based company. When war broke out in Ukraine, he worked to get 1,000 employees out of harm’s way in Ukraine before that invasion.

It ended up spreading throughout the company, as the employees mobilized to house these people, move them, give them food, give them shelter. And look, the basic COO quote is, doing good is good business. So I think a message…

SEANA SMITH: I’m also rooting for them now.

DAVE BRIGGS: –we can all fall behind them. OK.