The stock price of ContextLogic Inc (NASDAQ: WISH) enhanced 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 governing filings that appear to be driving up the rate so it seems like external variables are at play.

Specifically, the Wish Stock Price Today boosts 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 different social media systems. And also, there has actually been an uptick in out-of-the-money telephone call acquiring for the meme stocks, causing a gamma squeeze and also increasing the rate.

Other “meme stocks” that have actually seen an enter price 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 Health 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

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Why Is ContextLogic (DREAM) Stock Down Today?

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

Wish, a ContextLogic company a globally on the internet shopping app.
Resource: sdx15/ Shutterstock.com
After hitting a top of greater than $32 per share previously in 2014, WISH stock has since decreased to $1.65 per share at the time of this writing. Today’s down action of around 6% is merely the most recent in an absolute beatdown of this retail investor fave.

Capitalists had actually previously jumped on ContextLogic as an unique shopping company with the ability to potentially take on some massive leviathans in the space. Without a doubt, with a valuation of only $1.1 billion now, WISH stock had appeared like a decent wager. Considering just how fast other ecommerce players have actually run, it makes good sense.

However, ContextLogic’s service model is a bit various from other companies. This business attaches users with merchants directly, offering a much more smooth acquisition process for low-priced products. That stated, as rising cost of living has raved on as well as inexpensive things have been repriced greater (along with surging delivery costs), ContextLogic’s business design isn’t as attractive as it when was.

In addition to that, there takes place to be yet another bearish company-specific catalyst dragging WISH stock down today. So, let’s dive into what capitalists are viewing with WISH currently.

Bearish Analyst View Driving WISH Stock Lower
Today, expert Kunal Madhukar at UBS gave a reduced rate target for WISH stock. While UBS did keep its neutral rating, it lowered its price target to $2 per share. Formerly, the target had actually stood at $4.

Overall, downgrades are never helpful for an offered stock. Investors of all stripes tend to take notice of analyst rankings for a reason. These seasoned analysts model out expectations for a provided company, offering their take on its potential customers over the following year. What’s even more, while lots of do take into consideration analyst reports to be delayed signs of market belief as well as rate activity, there is intrinsic value in what experts have to claim.

Significantly, this is the second such downgrade from UBS over the past three months. There are some buy ratings as well as impressive cost targets for ContextLogic. However, overall, analysts appear to be taking a bearish sight of WISH right now. Accordingly, until this belief shifts, the market appears to home siding with them.

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