Home News ContextLogic jumps 22% as Redditors highlight it as a meme-stock play for...

ContextLogic jumps 22% as Redditors highlight it as a meme-stock play for the week


Mateusz Slodkowski/SOPA Images/LightRocket/Getty Images

ContextLogic, the e-commerce company that conducts the Wish platform, rallied 22 percent Monday.
The company was the top-hyped stock on Reddit investing threads such as Wall Street Bets.
"Wish is that the play week," said one Redditor.
See more information on Insider's business page.

Shares of ContextLogic jumped up to 22 percent Monday, as retail traders on Reddit investing threads touted that the e-commerce stock as the play to the week.

ContextLogic, the San Francisco, California-based company that operates the Wish ecommerce system, has been the top-hyped stock on Reddit investing threads such as Wall Street Bets Monday, based on data from HypeEquity. Retail investors were targeting $14-$16 per share, HypeEquity founder Travis Rehl explained in an email to Insider. Some traders even mentioned a cost as large as $50 or $100.

"WISH is your play week," said one Redditor with 12,500 "karma points" around the website. The consumer didn't immedately react to Insider's request for further comment.

Another Redditor, who posted what's called a "DD" or even "due diligence" about the stock, said "WISH is then a meme it’s actual fundamental price. "

In a reply to Insider, the Redditor explained the stock has been trading at around $10 but ought to be valued around $23 because of expected earnings of $3.2 billion this year.

"Industry average of 4.5 times earnings significance a base valuation of $14.4bil plus a price/stock of $23," that the Redditor explained.

About 5 percent of remarks from Redditors revolved around short selling, HypeEquity data showed. The short-volume ratio to the stock is currently 15%, based on statistics from Fintel.io.

On the weekend, that the stock ranked fifth one of memes around Reddit, based on Quiver Quantitative, falling under retail-trader favorites, AMC Entertainment, GameStop, Tesla, and BlackBerry.

Shares of the reduction ecommerce started their rise before this month when the company became a meme-stock, a.k.a., a favorite among retail traders mobilized on interpersonal networking. So far this month, the stock has shrunk about 75 percent. Other businesses, including Clean Energy Fuels and Torchlight, also have combined the meme-stock ranks from June amid renewed interest from retail dealers.

Since going public in December, however, stocks of ContextLogic have lost nearly half their value. The company reported a wider-than-expected first-quarter reduction last month and has said that the pandemic has had a much greater effect on its own budget-conscious client base, MarketWatch reported previously.

Read the first article on Business Insider

Article Source and Credit feedproxy.google.com http://feedproxy.google.com/~r/businessinsider/~3/uJHGyNE2Tww/contextlogic-stock-price-redditors-highlight-it-as-a-meme-stock-play-for-the-week-2021-6 Buy Tickets for every event – Sports, Concerts, Festivals and more buytickets.com