The stock price of ContextLogic Inc (NASDAQ:WISH) raised by 9.39% today. There are no company-specific news reports or regulative filings that appear to be increasing the price so it seems like external elements go to play.
Particularly, the Wish stock price boosts appear to be driven by a wider rally in the supposed “meme stocks.” As well as information from Quiver Measurable suggests that there has actually been a surge in conversations concerning meme stocks on various social networks platforms. And also, there has been an uptick in out-of-the-money phone call buying for the meme stocks, causing a gamma capture as well as driving up the price.
Various other “meme stocks” that have seen a jump in price 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 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
Why Is ContextLogic (DESIRE) Stock Down Today?
If it had not already, it currently seems clear that the meme-stock mania investors saw over a year back is completely over. For capitalists in ContextLogic (NASDAQ: WISH) and also WISH stock at least, the cost action of late has actually told that tale.
Wish, a ContextLogic firm an around the world online purchasing application.
Resource: sdx15/ Shutterstock.com
After hitting a height of more than $32 per share earlier last year, WISH stock has given that declined to $1.65 per share at the time of this writing. Today’s downward action of around 6% is simply the most recent in an absolute beatdown of this retail capitalist fave.
Financiers had previously gotten on ContextLogic as a distinct shopping company with the ability to possibly take on some massive leviathans in the room. Certainly, with an assessment of only $1.1 billion currently, WISH stock had actually appeared like a respectable wager. Thinking about how rapid other ecommerce players have run, it makes sense.
Nevertheless, ContextLogic’s organization design is a bit various from other service providers. This business links users with sellers straight, attending to a more seamless purchase procedure for low-cost items. That said, as rising cost of living has raved on as well as low-priced products have actually been repriced higher (along with surging shipping costs), ContextLogic’s organization design isn’t as eye-catching as it once was.
In addition to that, there happens to be yet another bearish company-specific driver dragging WISH stock down today. So, allow’s study what investors are enjoying with WISH currently.
Bearish Expert Sentiment Driving WISH Stock Lower
Today, analyst Kunal Madhukar at UBS gave a reduced price target for dream stock. While UBS did keep its neutral score, it decreased its price target to $2 per share. Previously, the target had actually stood at $4.
On the whole, downgrades are never great for a given stock. Capitalists of all red stripes often tend to pay attention to analyst ratings for a factor. These seasoned experts design out assumptions for a given company, supplying their take on its leads over the next year. What’s more, while numerous do think about expert reports to be lagging indications of market sentiment and price activity, there is intrinsic worth in what experts need to state.
Especially, this is the 2nd such downgrade from UBS over the past three months. There are some acquire ratings as well as excellent cost targets for ContextLogic. Nevertheless, on the whole, analysts appear to be taking a bearish sight of WISH now. Accordingly, until this belief changes, the market appears to exterior siding with them.