Finance

ContextLogic Inc continues free fall as active user numbers decline

  • ASDAQ:WISH fell a further 9.01% on Monday amidst a tumultuous day for the broader markets.
  • Stifel Nicolaus issues yet another stock downgrade for ContextLogic.
  • Singapore investing firm Temasek dumps its ContextLogic position.

NASDAQ:WISH has seen its stock outlook go from bad to worse over the weekend as several global institutions are moving on. On Monday, shares of WISH fell a further 9.01% to close the first trading session of the week at $6.87. The stock has now dropped over 80% since the start of 2021, and is down considerably from its Wall Street debut price in December at $24.00 per share. ContextLogic fell on general tech weakness on Monday, as the NASDAQ finished in the red while the S&P 500 and Dow shrugged off early losses to close in the green. 

Investment firm Stifel Nicolaus added another stock downgrade to Wish on Monday. Stifel Nicolaus did reiterate the stock as a hold right now, but downgraded the price target from $12.00 to $8.00. This comes on the heels of several downgrades from a long list of analysts from firms like Bank of America, JPMorgan, Oppenheimer, William Blair, and Cowen. Bank of America and JPMorgan were particularly harsh on ContextLogic with new price targets of $6.00 and $5.00 respectively. 

Is WISH a good stock to buy?

Is WISH a good buy for value investors at this depressed price? Singapore investing firm Temasek didn’t think so. Over the weekend the firm dumped its entire position in ContextLogic, which was worth an estimated total of $327 million in shares. Investors should not be surprised if we hear of other investment firms following suit as Wish continues to get pummeled following its recent disappointing earnings report. 

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View more information: https://www.fxstreet.com/news/wish-stock-price-contextlogic-inc-continues-free-fall-as-active-user-numbers-decline-202108171120

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