The stock price of ContextLogic Inc (NASDAQ:WISH) increased by 9.39% today. There are no company-specific news reports or regulative filings that seem increasing the cost so it seems like external aspects are at play.

Specifically, the Wish Stock Price Today boosts seem driven by a wider rally in the supposed “meme stocks.” As well as data from Quiver Quantitative suggests that there has actually been a rise in conversations regarding meme stocks on different social networks systems. Plus, there has been an uptick in out-of-the-money call acquiring for the meme stocks, triggering a gamma squeeze as well as increasing the rate.

Various other “meme stocks” that have seen an enter rate today consist of:

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

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

AMC Enjoyment 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 Company (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 investors saw over a year back is totally over. For investors in ContextLogic (NASDAQ: WISH) and also WISH stock at least, the rate action of late has told that story.

Wish, a ContextLogic company a worldwide on the internet buying application.
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After hitting a top of greater than $32 per share previously last year, WISH stock has actually because declined to $1.65 per share at the time of this writing. Today’s descending relocation of around 6% is just the most recent in an outright beatdown of this retail investor favorite.

Capitalists had previously gotten on ContextLogic as a distinct e-commerce business with the capability to possibly take on some enormous behemoths in the room. Certainly, with an appraisal of just $1.1 billion now, WISH stock had looked like a decent gamble. Considering how rapid other ecommerce gamers have actually run, it makes sense.

However, ContextLogic’s organization model is a bit various from various other service providers. This firm attaches users with vendors directly, offering a much more smooth purchase process for affordable products. That stated, as rising cost of living has actually raved on and also low-priced things have actually been repriced higher (together with rising delivery costs), ContextLogic’s service model isn’t as appealing as it when was.

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

Bearish Expert Belief Driving WISH Stock Lower
Today, analyst Kunal Madhukar at UBS supplied a reduced cost target for WISH stock. While UBS did preserve its neutral rating, it decreased its rate target to $2 per share. Previously, the target had actually stood at $4.

In general, downgrades are never ever great for a provided stock. Capitalists of all red stripes often tend to take note of expert rankings for a factor. These seasoned analysts model out expectations for an offered business, providing their take on its potential customers over the next year. What’s more, while several do consider analyst reports to be lagging signs of market sentiment and also price activity, there is integral value in what analysts need to state.

Notably, this is the 2nd such downgrade from UBS over the past three months. There are some acquire ratings and also excellent rate targets for ContextLogic. However, overall, analysts seem taking a bearish sight of WISH now. Accordingly, till this belief shifts, the market appears to exterior siding with them.