The stock price of ContextLogic Inc (NASDAQ:WISH) enhanced by 9.39% today. There are no company-specific report or regulative filings that seem increasing the price so it appears like external variables go to play.
Particularly, the $Wish Stock increases seem driven by a more comprehensive rally in the so-called “meme stocks.” As well as data from Quiver Measurable suggests that there has been a surge in discussions concerning meme stocks on various social media sites platforms. Plus, there has been an uptick in out-of-the-money call buying for the meme stocks, causing a gamma press as well as driving up the price.
Various other “meme stocks” that have seen an enter price today include:
GameStop Corp. (NYSE: GME)– Up 30.86% today
Bed Bathroom & 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 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 (DREAM) Stock Down Today?
If it hadn’t already, it currently seems clear that the meme-stock mania capitalists saw over a year earlier is totally over. For capitalists in ContextLogic (NASDAQ: WISH) as well as WISH stock a minimum of, the rate action of late has informed that tale.
Wish, a ContextLogic company an around the world online purchasing app.
Source: sdx15/ Shutterstock.com
After striking a peak of more than $32 per share previously in 2015, WISH stock has actually since decreased to $1.65 per share at the time of this writing. Today’s descending move of around 6% is just the latest in an absolute beatdown of this retail financier favorite.
Financiers had formerly jumped on ContextLogic as a special shopping firm with the ability to potentially compete with some large behemoths in the room. Certainly, with an appraisal of only $1.1 billion currently, WISH stock had felt like a decent wager. Taking into consideration how rapid various other e-commerce gamers have run, it makes good sense.
Nevertheless, ContextLogic’s service model is a bit different from various other service providers. This company connects customers with vendors straight, offering a more seamless acquisition process for low-priced items. That said, as inflation has actually raged on as well as low-cost products have been repriced higher (along with surging shipping costs), ContextLogic’s business design isn’t as appealing as it once was.
On top of that, there takes place to be yet one more bearish company-specific driver dragging WISH stock down today. So, allow’s dive into what financiers are enjoying 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 keep its neutral score, it reduced its rate target to $2 per share. Formerly, the target had actually stood at $4.
Overall, downgrades are never ever great for a given stock. Investors of all red stripes have a tendency to pay attention to analyst ratings for a reason. These skilled experts model out expectations for an offered business, offering their take on its prospects over the next year. What’s even more, while numerous do think about expert reports to be lagging indications of market belief and also price activity, there is inherent worth in what experts need to state.
Especially, this is the 2nd such downgrade from UBS over the past three months. There are some get ratings and also outstanding rate targets for ContextLogic. Nevertheless, overall, analysts seem taking a bearish view of WISH right now. Accordingly, till this belief changes, the market shows up to home siding with them.