Wix Just Changed Its Financial Guidance -- Is It Time to Panic?

Growth stocks have been getting hammered over the past year as investor sentiment has swung back in favor of value stocks. Companies that generate little or no profitability have been hit especially hard since the Federal Reserve is poised to begin raising interest rates this month and pare back on its "easy money" policy to fight inflation. Share prices of Wix.com (NASDAQ: WIX) have been no exception, and are now down some 75% from their all-time high reached in early 2021.

Wix stock took yet another tumble following the release of its fourth-quarter 2021 financial update and preliminary guidance for 2022 and 2023, which disappointed some investors. It looks like Wix's days of hyper-growth are over, but it certainly isn't time for shareholders of this cloud-based web development services company to panic either.

Image source: Getty Images.

Source Fool.com