The stock cost of ContextLogic Inc (NASDAQ:WISH) raised by 9.39% today. There are no company-specific news reports or regulative filings that seem driving up the rate so it seems like outside aspects are at play.
Particularly, the Wish stock price increases seem driven by a wider rally in the so-called “meme stocks.” And also information from Quiver Quantitative recommends that there has actually been a rise in discussions about meme stocks on various social media sites platforms. And also, there has been an uptick in out-of-the-money call buying for the meme stocks, creating a gamma press and also driving up the price.
Other “meme stocks” that have seen an enter cost today consist of:
GameStop Corp. (NYSE: GME)– Up 30.86% today
Bed Bath & 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 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 Corporation (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 currently, it currently seems clear that the meme-stock mania investors saw over a year back is totally over. For capitalists in ContextLogic (NASDAQ: WISH) as well as WISH stock at the very least, the cost action of late has informed that tale.
Wish, a ContextLogic firm an around the world on the internet buying application.
Source: sdx15/ Shutterstock.com
After hitting an optimal of greater than $32 per share earlier last year, 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 most up to date in an absolute beatdown of this retail financier favorite.
Capitalists had actually formerly gotten on ContextLogic as an unique shopping company with the capacity to potentially compete with some enormous behemoths in the room. Without a doubt, with an evaluation of just $1.1 billion now, WISH stock had seemed like a decent wager. Thinking about just how fast various other shopping gamers have actually run, it makes sense.
Nonetheless, ContextLogic’s company version is a bit different from other companies. This company attaches individuals with merchants directly, providing for a more smooth purchase process for affordable things. That said, as rising cost of living has actually raged on and low-priced items have actually been repriced higher (alongside rising shipping expenses), ContextLogic’s company version isn’t as attractive as it once was.
On top of that, there occurs to be yet one more bearish company-specific stimulant dragging WISH stock down today. So, allow’s study what financiers are watching with WISH currently.
Bearish Analyst Sentiment Driving WISH Stock Lower
Today, expert Kunal Madhukar at UBS provided a lower price target for desire stock. While UBS did maintain its neutral score, it decreased its cost target to $2 per share. Previously, the target had stood at $4.
On the whole, downgrades are never ever helpful for an offered stock. Investors of all stripes have a tendency to take note of analyst scores for a reason. These skilled analysts design out expectations for a provided company, supplying their take on its prospects over the following year. What’s more, while many do take into consideration analyst records to be delayed indications of market belief as well as cost activity, there is fundamental value in what experts need to state.
Especially, this is the 2nd such downgrade from UBS over the past 3 months. There are some buy ratings as well as impressive cost targets for ContextLogic. However, overall, experts appear to be taking a bearish view of WISH now. Appropriately, up until this sentiment shifts, the marketplace shows up to home siding with them.