The stock price of ContextLogic Inc (NASDAQ:WISH) enhanced by 9.39% today. There are no company-specific news reports or regulative filings that appear to be increasing the rate so it seems like outside elements go to play.
Particularly, the Wish stock price boosts seem driven by a broader rally in the supposed “meme stocks.” As well as data from Quiver Measurable recommends that there has been a rise in discussions concerning meme stocks on different social networks platforms. Plus, there has actually been an uptick in out-of-the-money call buying for the meme stocks, causing a gamma capture and also driving up the cost.
Other “meme stocks” that have actually seen a jump in cost today include:
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
Sundial Growers Inc (NASDAQ: SNDL)– Up 10.01% today
Why Is ContextLogic (DREAM) Stock Down Today?
If it hadn’t already, it currently appears clear that the meme-stock mania investors saw over a year ago is completely over. For investors in ContextLogic (NASDAQ: WISH) and WISH stock a minimum of, the cost activity of late has actually told that tale.
Wish, a ContextLogic company an around the world online shopping app.
Source: sdx15/ Shutterstock.com
After striking an optimal of greater than $32 per share earlier in 2014, WISH stock has because decreased to $1.65 per share at the time of this writing. Today’s down relocation of around 6% is merely the current in an outright beatdown of this retail investor fave.
Capitalists had actually formerly jumped on ContextLogic as a special shopping company with the capacity to potentially compete with some substantial leviathans in the room. Certainly, with an appraisal of just $1.1 billion now, WISH stock had seemed like a respectable gamble. Thinking about how fast other e-commerce gamers have actually run, it makes good sense.
Nonetheless, ContextLogic’s business version is a bit various from various other suppliers. This company links individuals with vendors straight, providing for a more smooth purchase procedure for inexpensive things. That said, as inflation has raved on and low-cost items have actually been repriced greater (along with rising shipping prices), ContextLogic’s business design isn’t as attractive as it as soon as was.
On top of that, there occurs to be yet an additional bearish company-specific driver dragging WISH stock down today. So, let’s dive into what capitalists are seeing with WISH currently.
Bearish Expert Belief Driving WISH Stock Lower
Today, analyst Kunal Madhukar at UBS supplied a lower price target for WISH stock. While UBS did keep its neutral score, it lowered its price target to $2 per share. Formerly, the target had stood at $4.
Generally, downgrades are never ever good for a given stock. Financiers of all stripes often tend to pay attention to expert rankings for a factor. These skilled analysts model out assumptions for a provided firm, offering their take on its leads over the following year. What’s more, while many do think about analyst reports to be delayed indications of market view and also cost activity, there is intrinsic value in what analysts have to claim.
Significantly, this is the second such downgrade from UBS over the past 3 months. There are some acquire ratings as well as outstanding rate targets for ContextLogic. Nevertheless, overall, analysts seem taking a bearish sight of WISH today. Accordingly, up until this view changes, the market appears to exterior siding with them.