The stock rate of ContextLogic Inc (NASDAQ:WISH) increased by 9.39% today. There are no company-specific report or regulatory filings that appear to be driving up the rate so it appears like outside variables go to play.
Specifically, the Wish Stock Forecast increases seem driven by a more comprehensive rally in the supposed “meme stocks.” And also data from Quiver Quantitative suggests that there has actually been a surge in discussions concerning meme stocks on different social media platforms. Plus, there has actually been an uptick in out-of-the-money phone call buying for the meme stocks, causing a gamma press as well as driving up the price.
Other “meme stocks” that have seen an enter rate today include:
GameStop Corp. (NYSE: GME)– Up 30.86% today
Bed Bathroom & Beyond Inc. (NASDAQ: BBBY)– Up 2.26% today
AMC Entertainment Holdings Inc (NYSE: AMC)– Up 15.02% today
Express, Inc. (NYSE: EXPR)– Up 9.73% today
Clover 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 Company (NASDAQ: KOSS)– Up 29.48% today
Timepiece Growers Inc (NASDAQ: SNDL)– Up 10.01% today
Why Is ContextLogic (WISH) Stock Down Today?
If it had not already, it currently appears clear that the meme-stock mania financiers saw over a year ago is totally over. For investors in ContextLogic (NASDAQ: WISH) and WISH stock at least, the cost action of late has told that story.
Wish, a ContextLogic firm a worldwide on the internet buying application.
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After striking an optimal of greater than $32 per share previously last year, WISH stock has since declined to $1.65 per share at the time of this writing. Today’s down move of around 6% is just the current in an outright beatdown of this retail capitalist favorite.
Investors had formerly jumped on ContextLogic as a distinct ecommerce firm with the capability to potentially take on some large leviathans in the area. Without a doubt, with a valuation of just $1.1 billion now, WISH stock had felt like a decent gamble. Thinking about exactly how fast other e-commerce gamers have actually run, it makes sense.
Nevertheless, ContextLogic’s organization design is a bit various from other service providers. This firm attaches customers with merchants directly, offering a more smooth acquisition process for inexpensive items. That said, as inflation has actually raged on and also low-priced items have actually been repriced higher (along with surging delivery costs), ContextLogic’s business design isn’t as eye-catching as it when was.
In addition to that, there takes place to be yet another bearish company-specific driver dragging WISH stock down today. So, allow’s dive into what capitalists are seeing with WISH now.
Bearish Expert Sentiment Driving WISH Stock Lower
Today, analyst Kunal Madhukar at UBS supplied a lower price target for desire stock. While UBS did maintain its neutral score, it decreased its rate target to $2 per share. Previously, the target had stood at $4.
In general, downgrades are never ever great for an offered stock. Capitalists of all stripes tend to pay attention to expert scores for a reason. These skilled experts model out assumptions for a provided business, supplying their take on its potential customers over the next year. What’s more, while many do consider expert records to be lagging indicators of market view and also price action, there is fundamental value in what experts have to say.
Significantly, this is the second such downgrade from UBS over the past 3 months. There are some buy rankings as well as outstanding rate targets for ContextLogic. However, on the whole, experts appear to be taking a bearish sight of WISH now. Appropriately, until this belief shifts, the market shows up to home siding with them.