Why wish stock is looking cheap comparing to other e-commerce platforms?
Wish stock has been beaten down since it’s all time high and it’s IPO price.
The Wish stock is trading more than -70% since it’s all time high and have more upward potential than downward potential comparing it’s balance sheet to it’s competitors.
Wish revenue was down in a year over year basis but this does not mean the stock could not reverse upward. Due to the CFO leaving Wish business, the stock hammered and triggered the panic sell. Fundamentally, wish is making more revenue than JMIA, Jumia Technologies, the African e-commerce company. Jumia is trading around $20 and wish is trading around $7 per share.
Fundamentally, this is undervalued stock and due to the short sellers being greedy, this stock had been trading lower. This could also mean when the fundamental valuation start making changes, short sellers could see a nightmare.
Recently, Wish internal executive team is purchasing the stock when it’s trading lower. The stock is in high growth e-commerce sector, which means we could see more than 500% of return over the long term investment. The history of Wish does tell itself, when the CEO decided not to sell it’s platform to Amazon for $10B offer.
Fundamentally, this could be a life changing long term investment. During the recent earning call, Wish stated that they will have permanent CFO who will be leading the Wish business growth over the long term.
