The stock price of ContextLogic Inc (NASDAQ:WISH) enhanced by 9.39% today. There are no company-specific report or regulatory filings that appear to be increasing the rate so it feels like outside factors are at play.
Particularly, the Wish Stock Price Today rises appear to be driven by a wider rally in the supposed “meme stocks.” And information from Quiver Quantitative suggests that there has actually been a surge in discussions about meme stocks on various social networks systems. And also, there has actually been an uptick in out-of-the-money call buying for the meme stocks, causing a gamma squeeze and driving up the cost.
Various other “meme stocks” that have seen an enter cost 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 And 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 Firm (NASDAQ: KOSS)– Up 29.48% today
Sundial Growers Inc (NASDAQ: SNDL)– Up 10.01% today
Why Is ContextLogic (WISH) Stock Down Today?
If it had not currently, it now appears clear that the meme-stock mania investors saw over a year earlier is totally over. For capitalists in ContextLogic (NASDAQ: WISH) and also WISH stock at least, the rate activity of late has told that tale.
Wish, a ContextLogic business a worldwide on the internet shopping app.
Resource: sdx15/ Shutterstock.com
After hitting an optimal of greater than $32 per share earlier in 2014, WISH stock has considering that declined to $1.65 per share at the time of this writing. Today’s downward move of around 6% is just the current in an outright beatdown of this retail financier favorite.
Financiers had previously jumped on ContextLogic as a special ecommerce firm with the ability to potentially take on some huge leviathans in the room. Without a doubt, with an assessment of only $1.1 billion currently, WISH stock had seemed like a good wager. Considering exactly how rapid other shopping players have run, it makes sense.
However, ContextLogic’s company model is a bit different from other providers. This business attaches individuals with sellers straight, providing for a more seamless acquisition process for affordable things. That stated, as rising cost of living has actually raged on and also discounted items have been repriced higher (together with surging delivery prices), ContextLogic’s business model isn’t as eye-catching as it once was.
On top of that, there takes place to be yet one more bearish company-specific catalyst dragging WISH stock down today. So, allow’s study what investors are seeing with WISH currently.
Bearish Analyst Belief Driving WISH Stock Lower
Today, analyst Kunal Madhukar at UBS supplied a lower cost target for WISH stock. While UBS did keep its neutral score, it lowered its price target to $2 per share. Formerly, the target had actually stood at $4.
On the whole, downgrades are never ever helpful for a provided stock. Investors of all red stripes have a tendency to take notice of expert scores for a factor. These seasoned analysts model out assumptions for an offered company, offering their take on its prospects over the following year. What’s more, while several do think about expert records to be lagging indications of market view and also rate action, there is fundamental value in what experts need to claim.
Notably, this is the second such downgrade from UBS over the past 3 months. There are some purchase ratings and also impressive cost targets for ContextLogic. Nonetheless, overall, analysts appear to be taking a bearish sight of WISH now. As necessary, until this sentiment changes, the market shows up to house siding with them.