The stock price of ContextLogic Inc (NASDAQ:WISH) raised by 9.39% today. There are no company-specific report or regulatory filings that appear to be driving up the price so it seems like external elements go to play.
Especially, the Wish Stock Earnings boosts seem driven by a more comprehensive rally in the supposed “meme stocks.” And also information from Quiver Measurable recommends that there has been a surge in conversations concerning meme stocks on different social media sites platforms. Plus, there has been an uptick in out-of-the-money telephone call acquiring for the meme stocks, causing a gamma press and also driving up the rate.
Various other “meme stocks” that have actually seen an enter rate today consist of:
GameStop Corp. (NYSE: GME)– Up 30.86% today
Bed Bath & 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
Sundial Growers Inc (NASDAQ: SNDL)– Up 10.01% today
Why Is ContextLogic (DREAM) Stock Down Today?
If it had not already, it now seems clear that the meme-stock mania capitalists saw over a year ago is totally over. For investors in ContextLogic (NASDAQ: WISH) and also WISH stock at least, the cost activity of late has actually told that story.
Wish, a ContextLogic business an around the world on-line shopping application.
Source: sdx15/ Shutterstock.com
After striking a peak of more than $32 per share earlier in 2014, WISH stock has actually since decreased to $1.65 per share at the time of this writing. Today’s down move of around 6% is simply the latest in an absolute beatdown of this retail investor favorite.
Capitalists had actually previously gotten on ContextLogic as an one-of-a-kind shopping firm with the capability to potentially compete with some substantial behemoths in the area. Indeed, with an evaluation of only $1.1 billion currently, WISH stock had actually looked like a good gamble. Considering how rapid other ecommerce players have run, it makes sense.
However, ContextLogic’s organization model is a bit different from various other service providers. This business attaches individuals with vendors directly, providing for a more seamless purchase procedure for low-priced products. That claimed, as inflation has actually surged on and discounted things have actually been repriced greater (alongside surging shipping costs), ContextLogic’s service model isn’t as appealing as it as soon as was.
In addition to that, there happens to be yet one more bearish company-specific catalyst dragging WISH stock down today. So, allow’s study what financiers are watching with WISH now.
Bearish Expert View Driving WISH Stock Lower
Today, expert Kunal Madhukar at UBS gave a lower cost target for dream 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 helpful for an offered stock. Financiers of all red stripes often tend to take note of expert rankings for a factor. These seasoned analysts model out expectations for a given company, providing their take on its leads over the next year. What’s more, while several do think about expert records to be lagging indicators of market belief and cost action, there is fundamental value in what analysts need to say.
Especially, this is the second such downgrade from UBS over the past 3 months. There are some buy scores and impressive cost targets for ContextLogic. Nonetheless, on the whole, analysts seem taking a bearish view of WISH right now. Appropriately, up until this sentiment shifts, the market appears to home siding with them.