(C) Reuters. Down 50% in 2021, is ContextLogic a Buy?
The share price of leading e-commerce platform ContextLogic (WISH) has plunged more than 50% year-to-date amid growing concerns surrounding the company’s bleak performance in its last reported quarter. Although WISH’s expanding logistics capabilities and differentiated product offerings could boost its growth in the long term, near-term headwinds could cause the stock to suffer a further pullback. Read more to find out.ContextLogic Inc. (WISH) is a mobile e-commerce company that operates in the United States and internationally. Its e-commerce platform connects users to merchants and offers marketplace and logistics services to merchants. The stock has declined 27.6% over the past month and 64.3% over the past three months. In fact, so far this year, WISH’s shares have tumbled 51.9% in the wake of substantial losses reported by the company in its last quarter.
The stock is currently trading at $8.78, which is 73.3% below its 52-week high of $32.85.
Despite WISH’s efforts to diversify its product offerings and robust demand on the company’s Wish app that could drive growth in the long run, the near-term headwinds related to class action lawsuits filed against the company could be a continuing cause of concern for investors. In addition to that, its weak financials make matters worse.
Down 50% in 2021, is ContextLogic a Buy?
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