WISH FUNDAMENTAL SUMMARY
WISH stock is up 5% today, September 23, 2021, after reaching its 52 weeks low of $5.82 per share. Definitely, the growth of e-commerce stock was over looked by the Wallstreet. WISH is currently serving 100+ countries around the world and have more than 50+ WISH local partners. As of their last earning call, they have more than $2.B equivalents.
“Wish has begun executing on initiatives designed to enhance the user experience and increase engagement on the Wish app following second-quarter results that did not meet our expectations,” said Wish Founder and CEO Piotr Szulczewski. “Our goal is to ensure that users love coming to Wish often for an entertaining shopping experience where they find unique products at affordable prices. We expect our focus on enhancing product quality and selection, providing an unmatched fun and entertaining shopping experience, and improving the performance of the app, will drive new user growth, retention and profitability over the long term. We are working hard to improve our performance and are confident that Wish will emerge as a stronger business.”
WISH stock 52 week high was $32.85 per share after their IPO last year. This was based on their fundamental valuation and future growth opportunities. The short sellers shorted the stock heavily and dropped below their IPO price of $24 per share. The overall market volatility dropped almost every single stock in the tech industries, other than the short squeeze stocks that were moving higher based on the hype and potential of squeeze.
From the fundamental perspective, WISH stock can trade above $30 per share over the long term period if they continue to execute and grow their revenue year over year. WISH 2020 revenue was $2.5B, 34% growth year over year. With the pandemic and some countries facing financial crices, WISH suffered on the sales last quarter and some drop in WISH app monthly users. That’s the main reason why short sellers took the opportunity to short this stock heavily. Back in 2017 – 2018, short sellers were shorting the Tesla stock heavily and look where is the Tesla stock now. Over the long term, WISH can definitely grow massively in the e-commerce sector. The nature of the short sellers is to make profit in the short term, but the nature of the growth business is to grow over the long term. Trading the wish stock in the short term can be risky due to the market volatility and manipulation, but investing for the long term can be a huge reward.
Every business needs a CEO who can turn around the business like a growth giant, and WISH CEO Peter Szulczewski is doing that exactly. As there was a rumor that AliBaba and Amazon wanted to do an acquisition with WISH and CEO Peter denied. The recent rumor that Amazon offered $10B to acquire WISH was also denied. Over the long term, the business growth can worth more than $10B and that could be the another reason why the acquisition didn’t go through or accepted by the CEO, Peter. This is a similar story as once Bill Gates didn’t sold Windows OS to IBM and now his networth worth more than $100B.
Long term investor should always revise the fundamental of business and leadership who is managing the business. Management team is one of the most important fundamental of the business and it’s growth over the long term.