The stock price of ContextLogic Inc (NASDAQ:WISH) increased by 9.39% today. There are no company-specific news reports or governing filings that seem driving up the price so it seems like exterior factors go to play.
Specifically, the Wish stock price boosts seem driven by a more comprehensive rally in the supposed “meme stocks.” As well as data from Quiver Quantitative recommends that there has been a rise in discussions concerning meme stocks on different social networks platforms. Plus, there has been an uptick in out-of-the-money telephone call acquiring for the meme stocks, creating a gamma press and increasing the price.
Various other “meme stocks” that have actually seen a jump in rate 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 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
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Why Is ContextLogic (DESIRE) Stock Down Today?
If it hadn’t already, it now appears clear that the meme-stock mania investors saw over a year back is completely over. For capitalists in ContextLogic (NASDAQ: WISH) and WISH stock at the very least, the rate action of late has told that story.
Wish, a ContextLogic company an around the world on-line purchasing app.
Source: sdx15/ Shutterstock.com
After hitting a top of more than $32 per share previously last year, WISH stock has because decreased to $1.65 per share at the time of this writing. Today’s down relocation of around 6% is just the most recent in an absolute beatdown of this retail investor favorite.
Investors had previously jumped on ContextLogic as a special ecommerce company with the ability to potentially compete with some large leviathans in the area. Indeed, with a valuation of just $1.1 billion now, WISH stock had felt like a decent gamble. Taking into consideration exactly how rapid various other e-commerce players have actually run, it makes good sense.
Nevertheless, ContextLogic’s service model is a bit different from other suppliers. This firm connects individuals with vendors directly, attending to an extra smooth purchase process for inexpensive things. That said, as inflation has actually raved on as well as discounted products have actually been repriced greater (alongside surging shipping expenses), ContextLogic’s company design isn’t as appealing as it as soon as was.
In addition to that, there happens to be yet one more bearish company-specific stimulant dragging WISH stock down today. So, let’s study what investors are seeing with WISH currently.
Bearish Analyst View Driving WISH Stock Lower
Today, analyst Kunal Madhukar at UBS offered a reduced rate target for WISH stock. While UBS did maintain its neutral rating, it reduced its rate target to $2 per share. Formerly, the target had stood at $4.
Overall, downgrades are never ever great for an offered stock. Financiers of all red stripes often tend to take note of expert rankings for a reason. These seasoned analysts design out expectations for a provided company, giving their take on its prospects over the following year. What’s even more, while numerous do think about expert reports to be delayed indicators of market belief and also rate activity, there is fundamental worth in what experts have to claim.
Especially, this is the second such downgrade from UBS over the past 3 months. There are some buy ratings and also excellent cost targets for ContextLogic. Nevertheless, overall, analysts seem taking a bearish view of WISH now. Appropriately, until this sentiment changes, the market shows up to home siding with them.
