Wix surged in afterhours Friday after activist investor Starboard Value reportedly took a 9% stake in the web development company, and held talks on ideas to improve performance.
Wix.Com (NASDAQ:WIX) was up more than 5% in afterhours trading following the news.
Starboard backs WIX's plans to become profitable and believes there is a significant opportunity for margin improvement, Reuters reported, citing unnamed sourcesThe web development company has struggled to sustain the growth it enjoyed during the pandemic, when users were desperate to digitize their businesses. But demand has waned as global economics reopened. Its share price is down about 54% year to date
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