Written by Yassin Ibrahim
Investing.com – Wix rose after hours on Friday after activist investor Starboard Value took a 9% stake in the web development company, and held talks about ideas to improve performance.
Wix.Com (NASDAQ:) prices rose more than 5% in after-hours trading following the news.
Reuters, citing unnamed sources, reported that Starboard supports WIX’s plans to become profitable and believes there is a significant opportunity for margin improvement.
The web development company has struggled to maintain the growth it has enjoyed during the pandemic, when users were desperate to digitize their businesses. But demand waned as the global economy reopened. Its share price is down about 54% since the start of the year.