The stock price of ContextLogic Inc (NASDAQ:WISH) raised by 9.39% today. There are no company-specific news reports or regulatory filings that appear to be increasing the price so it appears like exterior factors are at play.
Particularly, the Wish Stock Price Today rises appear to be driven by a more comprehensive rally in the supposed “meme stocks.” And information from Quiver Measurable recommends that there has actually been a rise in discussions regarding meme stocks on different social networks platforms. And also, there has actually been an uptick in out-of-the-money phone call purchasing for the meme stocks, creating a gamma squeeze and increasing the rate.
Other “meme stocks” that have actually seen an enter cost today include:
GameStop Corp. (NYSE: GME)– Up 30.86% today
Bed Bathroom & Beyond Inc. (NASDAQ: BBBY)– Up 2.26% today
AMC Amusement Holdings Inc (NYSE: AMC)– Up 15.02% today
Express, Inc. (NYSE: EXPR)– Up 9.73% today
Clover Health And Wellness Investments Corp (NASDAQ: CLOV)– Up 3.5% today
BlackBerry Ltd (NYSE: BB)– Up 4.91% today
Ocugen Inc (NASDAQ: OCGN)– Up 3.23% today
Koss Firm (NASDAQ: KOSS)– Up 29.48% today
Timepiece Growers Inc (NASDAQ: SNDL)– Up 10.01% today
Why Is ContextLogic (DESIRE) Stock Down Today?
If it had not already, it now appears clear that the meme-stock mania financiers saw over a year back is totally over. For investors in ContextLogic (NASDAQ: WISH) and also WISH stock at the very least, the price activity of late has informed that story.
Wish, a ContextLogic company a worldwide on-line shopping app.
Source: sdx15/ Shutterstock.com
After striking an optimal of greater than $32 per share previously last year, WISH stock has actually given that declined to $1.65 per share at the time of this writing. Today’s down action of around 6% is simply the latest in an absolute beatdown of this retail financier fave.
Capitalists had actually previously jumped on ContextLogic as a distinct ecommerce firm with the capability to possibly take on some enormous leviathans in the room. Without a doubt, with an evaluation of just $1.1 billion now, WISH stock had appeared like a decent wager. Thinking about exactly how quick other shopping players have run, it makes good sense.
Nevertheless, ContextLogic’s business design is a bit different from various other companies. This business connects users with sellers directly, providing for a much more smooth purchase procedure for low-cost products. That stated, as inflation has raved on and also low-cost products have actually been repriced higher (along with rising shipping prices), ContextLogic’s organization version isn’t as appealing as it as soon as was.
On top of that, there takes place to be yet one more bearish company-specific driver dragging WISH stock down today. So, let’s dive into what capitalists are seeing with WISH now.
Bearish Analyst Sentiment Driving WISH Stock Lower
Today, analyst Kunal Madhukar at UBS offered a lower price target for dream stock. While UBS did preserve its neutral rating, it decreased its price target to $2 per share. Previously, the target had stood at $4.
On the whole, downgrades are never ever good for a provided stock. Capitalists of all stripes often tend to focus on analyst scores for a factor. These seasoned analysts model out expectations for a given company, supplying their take on its potential customers over the next year. What’s even more, while several do think about expert records to be delayed indications of market view as well as rate activity, there is intrinsic worth in what experts need to claim.
Especially, this is the second such downgrade from UBS over the past three months. There are some buy rankings and outstanding rate targets for ContextLogic. Nevertheless, on the whole, analysts appear to be taking a bearish view of WISH now. Accordingly, up until this belief shifts, the marketplace shows up to house siding with them.