The stock price of ContextLogic Inc (NASDAQ: WISH) boosted by 9.39% today. This is why.

The stock cost of ContextLogic Inc (NASDAQ:WISH) enhanced by 9.39% today. There are no company-specific news reports or governing filings that seem increasing the rate so it appears like outside factors are at play.

Specifically, the Wish stock price rises appear to be driven by a wider rally in the so-called “meme stocks.” And data from Quiver Quantitative suggests that there has been a rise in conversations about meme stocks on different social media platforms. Plus, there has actually been an uptick in out-of-the-money telephone call buying for the meme stocks, triggering a gamma squeeze and driving up the price.

Other “meme stocks” that have actually seen an enter rate today consist of:

GameStop Corp. (NYSE: GME)– Up 30.86% today

Bed Bathroom & Beyond Inc. (NASDAQ: BBBY)– Up 2.26% today

AMC Home Entertainment Holdings Inc (NYSE: AMC)– Up 15.02% today

Express, Inc. (NYSE: EXPR)– Up 9.73% today

Clover Health And Wellness Investments Corp (NASDAQ: CLOV)– Up 3.5% today

BlackBerry Ltd (NYSE: BB)– Up 4.91% today

Ocugen Inc (NASDAQ: OCGN)– Up 3.23% today

Koss Company (NASDAQ: KOSS)– Up 29.48% today

Timepiece Growers Inc (NASDAQ: SNDL)– Up 10.01% today

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Why Is ContextLogic (DREAM) Stock Down Today?

If it hadn’t already, it currently seems clear that the meme-stock mania investors saw over a year earlier is totally over. For capitalists in ContextLogic (NASDAQ: WISH) as well as WISH stock a minimum of, the rate activity of late has actually informed that tale.

Wish, a ContextLogic company a worldwide on-line purchasing application.
Source: sdx15/ Shutterstock.com
After striking a top of more than $32 per share earlier in 2014, WISH stock has actually considering that declined to $1.65 per share at the time of this writing. Today’s descending relocation of around 6% is just the most up to date in an absolute beatdown of this retail capitalist fave.

Capitalists had actually formerly gotten on ContextLogic as a distinct ecommerce firm with the ability to possibly take on some massive behemoths in the area. Indeed, with an evaluation of just $1.1 billion now, WISH stock had actually seemed like a decent wager. Taking into consideration just how rapid other ecommerce players have actually run, it makes sense.

Nevertheless, ContextLogic’s organization version is a bit various from other providers. This firm attaches individuals with sellers directly, attending to an extra seamless acquisition process for affordable things. That stated, as inflation has actually raged on and low-priced things have actually been repriced higher (alongside surging delivery prices), ContextLogic’s business version isn’t as appealing as it when was.

In addition to that, there happens to be yet one more bearish company-specific stimulant dragging WISH stock down today. So, let’s study what capitalists are viewing with WISH currently.

Bearish Expert Belief Driving WISH Stock Lower
Today, expert Kunal Madhukar at UBS supplied a reduced rate target for desire stock. While UBS did keep its neutral ranking, it lowered its rate target to $2 per share. Previously, the target had actually stood at $4.

On the whole, downgrades are never great for a given stock. Financiers of all stripes tend to take note of analyst ratings for a reason. These seasoned experts model out expectations for a given firm, offering their take on its potential customers over the following year. What’s more, while lots of do take into consideration analyst reports to be lagging indications of market sentiment as well as rate activity, there is intrinsic value in what experts need to say.

Notably, this is the 2nd such downgrade from UBS over the past three months. There are some buy scores as well as outstanding rate targets for ContextLogic. Nonetheless, overall, experts seem taking a bearish sight of WISH right now. Accordingly, till this belief shifts, the market shows up to siding with them.