The stock price of ContextLogic Inc (NASDAQ:WISH) boosted by 9.39% today. There are no company-specific report or governing filings that appear to be increasing the rate so it looks like exterior aspects are at play.
Especially, the $Wish Stock increases seem driven by a wider rally in the supposed “meme stocks.” And also data from Quiver Measurable recommends that there has actually been a surge in discussions regarding meme stocks on various social media platforms. Plus, there has been an uptick in out-of-the-money telephone call purchasing for the meme stocks, triggering a gamma squeeze and also increasing the rate.
Various other “meme stocks” that have seen a jump in price today include:
GameStop Corp. (NYSE: GME)– Up 30.86% today
Bed Bath & Beyond Inc. (NASDAQ: BBBY)– Up 2.26% today
AMC Home Entertainment Holdings Inc (NYSE: AMC)– Up 15.02% today
Express, Inc. (NYSE: EXPR)– Up 9.73% today
Clover Health 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
Sundial Growers Inc (NASDAQ: SNDL)– Up 10.01% today
Why Is ContextLogic (DESIRE) Stock Down Today?
If it hadn’t currently, it now seems clear that the meme-stock mania financiers saw over a year back is entirely over. For investors in ContextLogic (NASDAQ: WISH) and also WISH stock a minimum of, the rate action of late has informed that tale.
Wish, a ContextLogic company a globally online shopping application.
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After striking an optimal of more than $32 per share previously in 2015, WISH stock has given that declined to $1.65 per share at the time of this writing. Today’s descending step of around 6% is simply the most recent in an absolute beatdown of this retail capitalist favorite.
Capitalists had actually previously jumped on ContextLogic as a special e-commerce firm with the ability to potentially compete with some enormous behemoths in the space. Certainly, with an evaluation of only $1.1 billion now, WISH stock had felt like a respectable gamble. Thinking about just how fast other shopping players have run, it makes sense.
Nevertheless, ContextLogic’s service model is a bit various from various other service providers. This firm attaches individuals with vendors directly, providing for a more seamless acquisition procedure for low-priced things. That said, as rising cost of living has actually raged on and low-priced items have actually been repriced greater (along with surging shipping costs), ContextLogic’s organization design isn’t as eye-catching as it when was.
In addition to that, there happens to be yet an additional bearish company-specific catalyst dragging WISH stock down today. So, allow’s study what investors are viewing with WISH now.
Bearish Analyst View Driving WISH Stock Lower
Today, expert Kunal Madhukar at UBS offered a lower price target for WISH stock. While UBS did keep its neutral rating, it lowered its rate target to $2 per share. Formerly, the target had stood at $4.
On the whole, downgrades are never ever helpful for a provided stock. Capitalists of all red stripes often tend to pay attention to expert ratings for a factor. These seasoned analysts design out expectations for an offered company, providing their take on its potential customers over the next year. What’s even more, while many do think about analyst reports to be lagging indicators of market belief as well as price activity, there is inherent value in what experts need to say.
Significantly, this is the 2nd such downgrade from UBS over the past 3 months. There are some buy ratings and also impressive cost targets for ContextLogic. Nevertheless, overall, experts seem taking a bearish view of WISH today. Appropriately, up until this sentiment changes, the marketplace appears to exterior siding with them.