Dorsal Capital Dumps 25,000 Wix.com Shares Worth $3 Million
Key Points
Dorsal Capital sold 25,000 Wix.com shares; estimated trade size of $3.02 million based on the quarter's average price.
Quarter-end stake value fell by $118.74 million, reflecting both trading and stock price changes.
The transaction represented 0.11% of Dorsal Capital's $2.88 billion 13F assets under management.
After the sale, the fund held 1,550,000 shares valued at $161.03 million, or 5.6% of 13F AUM.
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Dorsal Capital Management, LP disclosed in a February 17, 2026, Securities and Exchange Commission (SEC) filing that it sold 25,000 shares of Wix.com (NASDAQ:WIX).
What happened
A SEC filing dated February 17, 2026, showed Dorsal Capital Management, LP reduced its holdings in Wix.com by 25,000 shares during the fourth quarter of 2025. The estimated transaction value was $3.02 million, calculated using the average closing price for the period. The fund's quarter-end position value in Wix.com fell by $118.74 million, a figure that accounts for both trading activity and share price movement.
What else to know
- This sale left Wix.com at 5.6% of Dorsal Capital’s 13F reportable AUM at quarter end.
- Top five holdings after the filing:
- NYSE: PLNT: $298.29 million (10.5% of AUM)
- NYSE: TSM: $281.10 million (9.9% of AUM)
- NASDAQ: MSFT: $261.15 million (9.2% of AUM)
- NASDAQ: Z: $199.54 million (7.0% of AUM)
- NYSE: HD: $172.05 million (6.0% of AUM)
- As of February 13, 2026, shares of Wix.com were priced at $69.23, down 69.4% over the past year, underperforming the S&P 500 by 81.18 percentage points.
Company/Etf overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.93 billion |
| Net income (TTM) | $138.90 million |
| Price (as of market close February 13, 2026) | $69.23 |
| One-year price change | (69.39%) |
Company/Etf snapshot
- Offers a comprehensive cloud-based platform for website creation, web application development, business management tools, and integrated payment solutions.
- Generates revenue primarily from premium subscriptions, value-added business applications, and payment processing fees.
- Serves individuals, entrepreneurs, and small to medium-sized businesses seeking to establish and manage an online presence globally.
Wix.com is a leading provider of cloud-based website development and business management solutions, supporting millions of users worldwide. The company leverages a subscription-driven model and a broad suite of digital tools to drive recurring revenue and customer retention. Its scalable platform and global reach position Wix.com as a competitive force in the website infrastructure and digital commerce sector.
What this transaction means for investors
Investors may wonder what they should make of Dorsal Capital’s sale of some of its Wix.com stock. Filings such as the one described above do not explain why a fund might sell shares. Also, one might struggle to explain this particular sale since Dorsal only sold around 2% of its Wix.com shares.
Moreover, given the price action in the fourth quarter of 2025, the fund might have wished it had sold more. During Q4, the technology stock lost nearly 42% of its value.
Part of the drop seems to have involved its earnings release for the third quarter of 2025. Despite a 14% yearly gain in revenue in Q3, a spike in operating expenses may have spooked investors as it lost $589,000. In the third quarter of 2024, Wix.com earned a profit of almost $27 million.
Nonetheless, the P/E ratio has dropped to 30 thanks to the falling share price. Also, the forward P/E ratio of 10 may set an expectation of a financial improvement. That valuation probably makes the stock more attractive to buyers, possibly justifying Dorsal’s position in Wix.com stock.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot, Microsoft, Planet Fitness, Taiwan Semiconductor Manufacturing, Wix.com, and Zillow Group. The Motley Fool has a disclosure policy.
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