Can Wish Stock Provide 400% ROI in five years?
WISH – ContextLogic Inc stock continues to a downtrend in September 2021. The big institutions continue to buy the share and long “call options” while the price is trading lower. There are about 200 institutions holding WISH stock for the long term.
|Institutional Owners||218 total, 200 long, 1 short, 17 long/short|
The stock is currently trading around $5.91 per share which is -80% from its all-time high of $32.85. Due to the multiple negative news, WISH stock has been trading lower since early 2021.
Even the business fundamental is in the e-commerce sector and could return massive gains over the long term, the stock is currently stuck in the Meme sector for the short term. The retail momentum stocks are currently trading lower and with the higher short interest in WISH stock last quarter, it became the retails momentum stock. Once the WISH stock starts trading from its fundamental valuation, instead of retail momentum and shorts manipulations, we believe this stock will go back to where it belongs based on its balance sheet.
WISH stock is currently trading around $3.5B in market cap. The e-commerce sector is set to grow massively over the long-term period, especially since the 2019-2020 pandemic taught everyone to shop online. Wish is focusing to grow its business globally and with its new “Wish Local” platform, we believe this will also help the business to grow and bring more revenue and profits.
WISH has done multiple celebrity advertisements to promote its WISH app. WISH also partnered with NBA, “The Los Angeles Lakers – announced a multi-year partnership with Wish, a California-based, e-commerce platform. As part of the partnership, Wish’s logo will be featured on Lakers jerseys beginning in the 2017-18 season”. Wish also Announces Partnership With Leading Ecommerce Platform PrestaShop.
With the growing business, WISH is definitely losing money now, but if they can execute properly, they can be a giant e-commerce business “a small version of Amazon”. WISH stock can be a risky trade but with the fundamental growth, this can be a long-term opportunity investment as well. Let’s say, the economy is back to normal, and WISH goes back to $32.85 per share, this can provide a 452% gain on investment. It’s not easy to gain that amount of return on investment without the management improvement on the business. WISH is still looking for its new CFO and if they can bring someone from the retail/e-commerce experienced person who can help turn around the business, this can also be a big catalyst to help the stock price go higher and start trading from its valuation price.