ContextLogic (WISH) is a budding e-commerce marketplace with enormous growth potential. However, investors have been recoiling from the stock due to the company’s hefty quarterly losses and analysts’ downgrades. So, will the stock be able to recover from its current price dip in the coming months? Read more to find out.ContextLogic Inc. (WISH) in San Francisco is one of the largest e-commerce marketplaces, with more than 100 million monthly active users. The company operates in more than 100 countries through 500,000-plus registered merchants.
The stock has been losing momentum due to the company’s disappointing financial performance and recent analysts’ downgrades, however. Shares of WISH have declined 63.7% in price year-to-date and 28.9% over the past three months.
WISH’s revenues came in at $656 million in the fiscal second quarter, ended June 30, reflecting a 6% decline year-over-year. The company missed the $722.92 million consensus estimate. Furthermore, its net loss increased 909.1% from the same period last year to $111 million. WISH reported negative $67 million in EBITDA over this period, indicating a significant decline from its positive year-ago value. Following the disappointing second-quarter results, five of 11 analysts surveyed by FactSet have downgraded the stock. WISH has declined 33.3% in price since reporting its results on August 12.