How Dorsal Capital Trimmed Its Wix.com Position: A Strategic Shift in Q4 2025

Dorsal Capital Management, LP made a notable adjustment to its Wix.com holdings in early 2025, reducing its stake through a deliberate equity sale. The fund’s decision to pare back its Dorsal position in the website platform provider reflects broader market dynamics and the company’s shifting financial landscape.

The Details Behind Dorsal’s Partial Exit

According to an SEC filing released on February 17, 2026, the asset manager divested 25,000 shares of Wix.com (NASDAQ:WIX) during the fourth quarter of 2025. The estimated transaction value was approximately $3.02 million, calculated using average closing prices for the period. This move represented a calculated reduction—the fund sold roughly 2% of its total Wix.com holdings.

Despite this tactical sale, Dorsal maintained a substantial position in the company. Following the transaction, the fund retained 1,550,000 shares valued at $161.03 million, representing 5.6% of its $2.88 billion in 13F reportable assets under management. In portfolio terms, the residual holding still commands meaningful weight within the fund’s equity allocation.

Understanding the Market Context: Wix.com’s Financial Turbulence

The timing of Dorsal’s position reduction proved prescient. During Q4 2025, Wix.com shares plummeted nearly 42%, far outpacing the broader market decline. By February 13, 2026, shares traded at $69.23, down 69.4% over the preceding twelve months—a performance gap of 81.18 percentage points versus the S&P 500.

The sell-off wasn’t purely technical; it reflected genuine operational headwinds. In Q3 2025, despite achieving 14% year-over-year revenue growth to support ongoing expansion, the company reported a $589,000 operating loss—a stark reversal from the $27 million profit posted in Q3 2024. This earnings disappointment appears to have triggered investor repositioning, catching many holders off guard.

The Valuation Reset and Investment Implications

Interestingly, the market’s harsh repricing has created a mixed picture for investors evaluating Wix.com today. The forward-looking P/E ratio has compressed to just 10, suggesting the market is pricing in meaningful earnings recovery. The trailing P/E sits at 30, still elevated but reflecting depressed current profitability.

For funds like Dorsal maintaining a position in the stock, this valuation presents both risk and opportunity. A forward P/E of 10 implies investor expectations for substantial profit margin improvement—a high bar that the company must clear to justify current pricing. The company’s platform business, which generated $1.93 billion in trailing twelve-month revenue, possesses inherent scalability if management can restore operational discipline.

Dorsal’s decision to selectively trim its Wix.com position—rather than liquidate entirely—suggests confidence in the long-term thesis despite near-term turbulence. The fund’s remaining 5.6% portfolio weight indicates a measured, reconsidered stance on the company’s recovery trajectory.

Portfolio Context: Where Wix Ranks Among Dorsal’s Holdings

Within Dorsal Capital’s portfolio, Wix.com ranked fifth among disclosed positions at quarter-end, though the fund maintains several larger stakes:

• Planet Fitness (NYSE: PLNT): $298.29 million allocation (10.5% of AUM)
• Taiwan Semiconductor Manufacturing (NYSE: TSM): $281.10 million (9.9% of AUM)
• Microsoft (NASDAQ: MSFT): $261.15 million (9.2% of AUM)
• Zillow Group (NASDAQ: Z): $199.54 million (7.0% of AUM)

This portfolio construction reveals a thematic focus on scalable technology platforms and consumer-facing digital infrastructure—a positioning that suggests Dorsal believes Wix.com, despite current challenges, remains strategically relevant to its broader investment narrative around digital transformation.