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

The stock cost of ContextLogic Inc (NASDAQ:WISH) increased by 9.39% today. There are no company-specific news reports or regulatory filings that appear to be driving up the price so it appears like exterior variables go to play.

Particularly, the Wish Stock Price Today boosts seem driven by a more comprehensive rally in the so-called “meme stocks.” And also information from Quiver Quantitative recommends that there has been a rise in discussions concerning meme stocks on different social media platforms. And also, there has actually been an uptick in out-of-the-money phone call acquiring for the meme stocks, creating a gamma capture and also driving up the price.

Various other “meme stocks” that have actually seen a jump in cost today consist of:

GameStop Corp. (NYSE: GME)– Up 30.86% today

Bed Bath & Beyond Inc. (NASDAQ: BBBY)– Up 2.26% today

AMC 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 Firm (NASDAQ: KOSS)– Up 29.48% today

Timepiece Growers Inc (NASDAQ: SNDL)– Up 10.01% today

Why Is ContextLogic (WISH) Stock Down Today?

If it hadn’t currently, it now seems clear that the meme-stock mania capitalists saw over a year ago is totally over. For financiers in ContextLogic (NASDAQ: WISH) and also WISH stock at least, the cost activity of late has told that story.

Wish, a ContextLogic business a worldwide on-line shopping application.
Source: sdx15/
After hitting a height of more than $32 per share earlier last year, WISH stock has given that decreased to $1.65 per share at the time of this writing. Today’s down step of around 6% is just the most up to date in an absolute beatdown of this retail financier fave.

Investors had actually formerly gotten on ContextLogic as an one-of-a-kind shopping firm with the capacity to possibly take on some huge behemoths in the area. Indeed, with a valuation of just $1.1 billion currently, WISH stock had actually looked like a decent gamble. Considering exactly how fast other ecommerce players have actually run, it makes sense.

Nonetheless, ContextLogic’s business model is a bit various from various other carriers. This company connects users with vendors directly, offering an extra seamless acquisition process for affordable products. That said, as rising cost of living has raged on and also inexpensive products have actually been repriced higher (together with rising shipping prices), ContextLogic’s business version isn’t as attractive as it as soon as was.

In addition to that, there happens to be yet one more bearish company-specific driver dragging WISH stock down today. So, let’s dive into what financiers are seeing with WISH now.

Bearish Analyst Belief Driving WISH Stock Lower
Today, analyst Kunal Madhukar at UBS provided a reduced price target for desire stock. While UBS did preserve its neutral ranking, it lowered its rate target to $2 per share. Formerly, the target had stood at $4.

Overall, downgrades are never great for a provided stock. Investors of all red stripes often tend to focus on expert ratings for a reason. These seasoned analysts model out assumptions for a provided firm, providing their take on its leads over the following year. What’s even more, while lots of do consider expert records to be lagging indicators of market belief as well as rate activity, there is intrinsic worth in what analysts have to say.

Especially, this is the second such downgrade from UBS over the past 3 months. There are some purchase ratings and excellent rate targets for ContextLogic. Nonetheless, on the whole, experts seem taking a bearish view of WISH right now. Accordingly, until this sentiment shifts, the market appears to siding with them.