The stock cost of ContextLogic Inc (NASDAQ: WISH) increased by 9.39% today. This is why.

The stock price of ContextLogic Inc (NASDAQ:WISH) increased by 9.39% today. There are no company-specific report or regulatory filings that appear to be driving up the rate so it seems like external aspects go to play.

Especially, the Wish stock price increases appear to be driven by a wider rally in the supposed “meme stocks.” As well as data from Quiver Quantitative recommends that there has actually been a surge in discussions about meme stocks on numerous social media sites platforms. Plus, there has actually been an uptick in out-of-the-money call purchasing for the meme stocks, creating a gamma capture as well as increasing the price.

Various other “meme stocks” that have 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 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 Corporation (NASDAQ: KOSS)– Up 29.48% today

Sundial 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 financiers saw over a year ago is entirely over. For investors in ContextLogic (NASDAQ: WISH) and WISH stock at least, the cost activity of late has told that story.

Wish, a ContextLogic company a worldwide online buying application.
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After striking a height of more than $32 per share previously last year, WISH stock has actually considering that declined to $1.65 per share at the time of this writing. Today’s downward action of around 6% is just the most recent in an outright beatdown of this retail capitalist fave.

Financiers had actually previously gotten on ContextLogic as a distinct shopping company with the ability to possibly take on some enormous behemoths in the space. Certainly, with a valuation of only $1.1 billion now, WISH stock had looked like a respectable wager. Taking into consideration how quick various other ecommerce gamers have actually run, it makes sense.

Nonetheless, ContextLogic’s company model is a bit various from other suppliers. This company attaches individuals with merchants directly, offering an extra smooth purchase procedure for low-priced products. That claimed, as inflation has raved on as well as low-priced items have actually been repriced higher (along with rising delivery expenses), ContextLogic’s organization model isn’t as eye-catching as it as soon as was.

In addition to that, there happens to be yet an additional bearish company-specific driver dragging WISH stock down today. So, allow’s study what financiers are seeing with WISH now.

Bearish Analyst Sentiment Driving WISH Stock Lower
Today, expert Kunal Madhukar at UBS supplied a lower price target for dream stock. While UBS did keep its neutral score, it reduced its price target to $2 per share. Previously, the target had stood at $4.

On the whole, downgrades are never ever good for a provided stock. Financiers of all red stripes tend to take note of analyst ratings for a reason. These seasoned experts model out assumptions for a provided business, giving their take on its leads over the next year. What’s more, while many do think about expert reports to be delayed signs of market belief and also cost activity, there is integral worth in what analysts have to state.

Significantly, this is the 2nd such downgrade from UBS over the past 3 months. There are some purchase ratings and outstanding price targets for ContextLogic. Nevertheless, on the whole, experts seem taking a bearish view of WISH today. Accordingly, till this sentiment changes, the market appears to house siding with them.

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