The stock rate of ContextLogic Inc (NASDAQ: WISH) boosted 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 governing filings that seem driving up the price so it seems like external aspects go to play.

Especially, the Wish Stock Buy or Sell price increases appear to be driven by a wider rally in the supposed “meme stocks.” And data from Quiver Quantitative suggests that there has actually been a surge in conversations about meme stocks on numerous social media sites platforms. Plus, there has been an uptick in out-of-the-money phone call buying for the meme stocks, triggering a gamma press and also driving up the rate.

Other “meme stocks” that have seen a jump in cost today include:

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

Bed Bath & 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 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 (DESIRE) Stock Down Today?

If it had not already, it now seems clear that the meme-stock mania investors saw over a year earlier is totally over. For capitalists in ContextLogic (NASDAQ: WISH) and also WISH stock a minimum of, the cost activity of late has told that tale.

Wish, a ContextLogic firm a globally on the internet purchasing application.
Resource: sdx15/ Shutterstock.com
After hitting a peak of greater than $32 per share earlier in 2014, WISH stock has actually because declined to $1.65 per share at the time of this writing. Today’s down move of around 6% is simply the most up to date in an absolute beatdown of this retail investor fave.

Financiers had actually formerly jumped on ContextLogic as a special ecommerce company with the ability to possibly compete with some enormous leviathans in the area. Certainly, with a valuation of just $1.1 billion currently, WISH stock had looked like a respectable wager. Taking into consideration exactly how fast other ecommerce players have run, it makes good sense.

Nonetheless, ContextLogic’s organization model is a bit various from other companies. This firm attaches customers with sellers straight, attending to a more seamless purchase procedure for low-priced products. That claimed, as inflation has actually surged on and discounted things have actually been repriced higher (together with rising delivery costs), ContextLogic’s organization version isn’t as appealing as it when was.

In addition to that, there takes place to be yet one more bearish company-specific catalyst dragging WISH stock down today. So, allow’s dive into what investors are watching with WISH now.

Bearish Expert Sentiment Driving WISH Stock Lower
Today, analyst Kunal Madhukar at UBS provided a reduced cost target for dream stock. While UBS did preserve its neutral ranking, it lowered its price target to $2 per share. Previously, the target had actually stood at $4.

On the whole, downgrades are never great for a given stock. Investors of all red stripes often tend to take note of analyst scores for a factor. These experienced analysts model out expectations for an offered company, offering their take on its potential customers over the following year. What’s even more, while lots of do think about analyst reports to be lagging indicators of market sentiment as well as rate activity, there is intrinsic value in what experts have to claim.

Especially, this is the 2nd such downgrade from UBS over the past 3 months. There are some get rankings and outstanding price targets for ContextLogic. However, on the whole, analysts appear to be taking a bearish sight of WISH now. Accordingly, up until this sentiment shifts, the marketplace appears to house siding with them.