WISH Stock Still Has Potential Despite a Dud IPO
- Active Buyers Are Starting to Sag. At first glance, Wish looks like a no-brainer “buy.” The world’s No. ...
- The Most Instagrammable Flea Market. Wish sells cheap products in a beautiful setting. ...
- Dumpster-Diving for Deals. There’s good reason to worry about Wish’s prospects. ...
- Valuation Looks Full. ...
- The Perils of Shorting WISH Stock. ...
Full Answer
Is wish a good stock to buy?
However, that may not be true as Wish primarily focuses on serving lower-income consumers interested in nonbranded products. Currently, the stock doesn’t seem like a good investment due to the company’s continuously low revenue and high stock volatility.
How much is a share of wish worth?
One share of WISH stock can currently be purchased for approximately $2.10. How much money does ContextLogic make? ContextLogic has a market capitalization of $1.35 billion and generates $2.09 billion in revenue each year. The company earns $-745 million in net income (profit) each year or ($0.58) on an earnings per share basis.
Is wish stock undervalued or overvalued?
With a 2022 EV-to-EBITDA multiple of 0.9x, WISH stock looks undervalued and attractively priced. Reddit group WallStreetBets has built its reputation by triggering a short squeeze in many stocks like GameStop and AMC Entertainment. According to Fintel, WISH stock’s short interest was 18.2 percent on May 21.
What is the wish company?
The company operates Wish platform that connects users to merchants. It also provides marketplace and logistics services to merchants. The company was incorporated in 2010 and is headquartered in San Francisco, California.
Is it good to buy WISH stock?
The company's top-line growth accelerated to 75% in the first quarter of 2021. While still unprofitable, Wish is forecast to narrow its losses from $5.87 per share in 2020 to $0.38 per share in 2022 and might turn profitable by the end of 2024.
Is WISH stock Expected to Rise?
ContextLogic Inc (NASDAQ:WISH) The 5 analysts offering 12-month price forecasts for ContextLogic Inc have a median target of 2.00, with a high estimate of 7.60 and a low estimate of 1.50. The median estimate represents a +11.11% increase from the last price of 1.80.
Why is WISH stock so cheap?
Wish sold many of its products at lower prices than regional marketplaces like Amazon, but customers had to wait much longer for their products to arrive. Wish's dependence on Chinese merchants also exposed its shoppers to low-quality and fake products, and it took a long time to process returns.
Is WISH a good stock to buy Zacks?
WISH 1.80 -0.15(-7.69%) Zacks Investment Research is releasing its prediction for WISH based on the 1-3 month trading system that nearly triples the S&P 500.
What will WISH be worth in 2022?
ContextLogic Inc - Class A quote is equal to 1.795 USD at 2022-06-04. Based on our forecasts, a long-term increase is expected, the "WISH" stock price prognosis for 2027-05-26 is 10.133 USD. With a 5-year investment, the revenue is expected to be around +464.51%.
How much will WISH stock be worth?
According to analysts' consensus price target of $5.22, ContextLogic has a forecasted upside of 191.7% from its current price of $1.79.
Will Amazon Buy WISH?
Alibaba and Amazon have had acquisition talks with Wish in the past year. One person close to top players at Wish says Amazon recently offered $10 billion in cash to buy the company, and Wish's CEO walked away.
Is WISH oversold?
Positively, ProductBoost advertising-income, on the other hand, rose 11% year on year to $50 million and increased 126% year on year to $228 million, as per the firm's Q2 2021 results. Finally, it is possible that WISH stock is oversold since ContextLogic's revenue and active users continue to increase every year.
Signals & Forecast
There are few to no technical positive signals at the moment. The ContextLogic Inc. stock holds sell signals from both short and long-term moving averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average.
Support, Risk & Stop-loss
There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.
Is ContextLogic Inc. stock A Buy?
ContextLogic Inc. holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock.
Insiders are very positive buying more shares than they are selling in ContextLogic Inc
In the last 100 trades there were 12.73 million shares bought and 1.75 million shares sold. The last trade was done 8 days ago by Szulczewski Piotr who sold 56.09 thousand shares. The large amount of stocks bought compared to stocks sold indicate that the insiders believe there is a potential good upside.
Golden Star Signal
This unique signal uses moving averages and adds special requirements that convert the very good Golden Cross into a Golden Star. This signal is rare and, in most cases, gives substantial returns. From 10 000+ stocks usually only a few will trigger a Golden Star Signal per day!
Top Fintech Company
featured in The Global Fintech Index 2020 as the top Fintech company of the country.
What Is Wish?
Wish is an e-commerce platform that sells everything from beauty supplies and fashion to gadgets and electronics. The website caters to buyers in over a hundred countries, although most merchants are from China, as noted by The Motley Fool.
How Much Is Wish Worth?
ContextLogic Inc. stock opened at $5.97 and closed at $6.14 on Sept. 23, giving the company a market capitalization of $3.85 billion.
How and Where To Buy Wish Stock
If you want to buy ContextLogic Inc. stock, sign up to make an account on a trading platform and enter the requested personal information to open your brokerage account . Then you can buy the number of shares you want. The company operates under the ticker WISH.
Is Wish Stock a Good Investment?
Some investors might consider Wish stock a good investment since they believe the website will become the next Amazon. However, that may not be true as Wish primarily focuses on serving lower-income consumers interested in nonbranded products.
About the Author
Scott Jeffries is a seasoned technology professional based in Florida. He writes on the topics of business, technology, digital marketing and personal finance. After earning his bachelor’s in Management Information Systems with a minor in Business, Scott spent 15 years working in technology.
What is a wish?
Wish is a mobile-first e-commerce marketplace designed primarily for cost-conscious consumers. The company offers some of the cheapest listings of any marketplace worldwide and buyers are often willing to sacrifice a bit of quality in exchange for the platform's cheaper prices.
How much of Wish's profit is spent on sales?
In its most recent quarter, Wish spent more than 100% of its gross profit on sales and marketing expenses even though the company's customer count declined. Since Wish has roughly $1.8 billion in cash and equivalents on its balance sheet, it's logical that the company is pouring money into growth-related initiatives.
How long does it take for Wish to ship?
Wish's time to delivery is reported to be anywhere from 15 to 45 days with that number growing even larger amid the pandemic due to shipping struggles.
Is Wish a parent company?
ContextLogic ( NASDAQ:WISH), the parent company of the Wish e-commerce marketplace, made its market debut last December. But after less than six months on the public markets, the company's stock is already down more than 70% from its highs. Despite consistently growing its revenue, the company has been plagued by losses, ...
Why is Wish stock falling?
On a macro level, there has been a sell-off in growth and tech companies which is weighing heavy on WISH stock. Investors have become increasingly apprehensive of growth names especially those which are posting losses and don’t have any clear-cut path to profitability.
How much is Wish worth?
Currently, WISH has a market cap of just over $5 billion, while it has around $1.8 billion as cash on its balance sheet. This means an enterprise value of around $3.3 billion. Analysts expect ContextLogic to report revenues of $3.2 billion in 2021 and $3.8 billion in 2022.
When did Wish go public?
ContextLogic (WISH), which went public in December 2020 , is having a hard time. It had a lackluster listing and the shares closed at $20.05 on the listing day after opening at $22.75. The company priced the IPO at the upper end of the range at $24. Why is WISH stock falling and should you buy the dip now?
Wish Stock Analysis
Looking at Wish’s stock chart, you would assume it’s a failing company. After an initial run, the graph looks like a downward ski slope, with Wish stock price dropping basically all year.
Disappointing Q3 Earnings for Wish Stock
Not only did the company announce its CEO is leaving, but their Q3 result shows the marketplace is losing ground.
The Turnaround Strategy
Part of Wish’s plan to turn things around is cutting back on ad spending to focus on its existing users. The company is planning to study repeat customers to learn the products they are buying. This way, they can promote better quality items. That said, the turnaround plan consists of two primary points:
Wish Stock Forecast – Where Do We Go From Here?
With Wish stock down 80% this year, will it sink lower? Or, will it finally break out of its downtrend?
About ContextLogic
ContextLogic Inc. operates as a mobile ecommerce company in Europe, North America, South America, and internationally. The company operates Wish platform that connects users to merchants. It also provides marketplace and logistics services to merchants. The company was incorporated in 2010 and is headquartered in San Francisco, California.
ContextLogic (NASDAQ:WISH) Frequently Asked Questions
12 Wall Street analysts have issued "buy," "hold," and "sell" ratings for ContextLogic in the last year. There are currently 3 sell ratings, 5 hold ratings and 4 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "hold" ContextLogic stock.
Insider Buying and Selling by Quarter
Want to know when executives and insiders are buying or selling ContextLogic stock? Sign up for InsiderTrades.com's daily newsletter to get the latest insider transactions delivered to your inbox daily.
Who is on ContextLogic's Insider Roster?
The list of insiders at ContextLogic includes Brett Just, Cove Street Capital, Llc, Devang Shah, Dort A Cameron III, Hamid Reza Kassaei, Hans Tung, Harvey P Eisen, Jacqueline D Reses, Jennifer Oliver, Pai Liu, Peiyen Chuang, Piotr Szulczewski, Rajat Bahri, Tarun Kumar Jain, and Ying Vivian Liu. Learn more on WISH's insiders
