The Wish stock price surged on Monday as the shares continued to attract more retail investors. ContextLogic, the parent company of Wish.com, was the most active stock in Reddit, StockTwits, and Robinhood. Its stock rose by more than 18% to the current $13. This brings its total market capitalization to more than $7.9 billion.
Wish.com news. Wish is a relatively popular e-commerce company that has more than 100 million customers. Most of them use the platform because of its relatively affordable products. The firm operates an asset-light model since it does not own a lot of warehouses like other e-commerce firms. It charges its retailers a fee for handling its logistics services. The logistics business’ revenue rose by 338% to $245 million in the most recent quarter. The core marketplace revenue rose by 40% to $477 million.
The company went public in December and its stock has underperformed the market. The Wish stock price is about 58% below the highest point in February. This performance was partly because the firm lowered its guidance when it released its results in May. The company said that it expects its revenue to come in at between $712 million and $730 million in the second quarter. This was slightly lower than what analysts were expecting. Still, the company could outperform because of the free advertisement it has received since the company became a meme stock.
The four-hour chart shows that the ContextLogic stock price has jumped by more than 80% from its lowest level this year. The stock is slightly below the important resistance level at $15, which was the highest level on June 9. The stock has also moved above the 25-day and 50-day moving averages.
It is also attempting to move above the 23.6% Fibonacci retracement level. Therefore, I suspect that the shares will move to $17.25 if bulls manage to push it above this resistance level. This is a 28% above the current level. However, a drop below $10 will invalidate this prediction.
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