The stock price of ContextLogic Inc (NASDAQ: WISH) raised by 9.39% today. This is why.

The stock rate of ContextLogic Inc (NASDAQ:WISH) increased by 9.39% today. There are no company-specific news reports or regulatory filings that seem driving up the price so it feels like external variables go to play.

Especially, the Wish Stock Price Target increases seem driven by a broader rally in the supposed “meme stocks.” And information from Quiver Measurable suggests that there has been a rise in discussions concerning meme stocks on numerous social media sites platforms. Plus, there has been an uptick in out-of-the-money telephone call acquiring for the meme stocks, causing a gamma squeeze as well as driving up the price.

Various other “meme stocks” that have seen an enter rate 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 Company (NASDAQ: KOSS)– Up 29.48% today

Sundial Growers Inc (NASDAQ: SNDL)– Up 10.01% today

Why Is ContextLogic (DREAM) Stock Down Today?

If it had not currently, it now seems clear that the meme-stock mania financiers saw over a year ago is totally over. For capitalists in ContextLogic (NASDAQ: WISH) and also WISH stock at the very least, the price action of late has actually told that story.

Wish, a ContextLogic company an around the world online purchasing application.
Resource: sdx15/
After striking a height of more than $32 per share earlier last year, WISH stock has considering that declined to $1.65 per share at the time of this writing. Today’s down move of around 6% is merely the most recent in an absolute beatdown of this retail capitalist fave.

Capitalists had actually previously gotten on ContextLogic as a distinct shopping company with the capability to possibly take on some enormous leviathans in the area. Indeed, with an evaluation of just $1.1 billion currently, WISH stock had looked like a suitable wager. Taking into consideration exactly how quick other shopping players have actually run, it makes sense.

However, ContextLogic’s service version is a bit different from various other service providers. This business connects users with sellers directly, offering a more seamless purchase process for low-priced things. That claimed, as inflation has actually raged on and low-priced things have actually been repriced higher (alongside rising delivery costs), ContextLogic’s service design isn’t as attractive as it as soon as was.

On top of that, there takes place to be yet an additional bearish company-specific driver dragging WISH stock down today. So, allow’s study what financiers are viewing with WISH now.

Bearish Expert Sentiment Driving WISH Stock Lower
Today, expert Kunal Madhukar at UBS offered a lower cost target for desire stock. While UBS did preserve its neutral rating, it reduced its rate target to $2 per share. Formerly, the target had stood at $4.

Overall, downgrades are never good for an offered stock. Capitalists of all stripes tend to take note of analyst rankings for a factor. These experienced analysts design out assumptions for a provided company, providing their take on its prospects over the next year. What’s even more, while lots of do consider expert reports to be delayed indicators of market belief and also price action, there is inherent value in what analysts have to say.

Notably, this is the 2nd such downgrade from UBS over the past three months. There are some get ratings and also excellent cost targets for ContextLogic. Nonetheless, on the whole, experts appear to be taking a bearish sight of WISH today. Accordingly, until this belief shifts, the marketplace shows up to home siding with them.