ContextLogic Inc. (NASDAQ:WISH) is the parent company of e-commerce platform Wish. The San-Francisco-based company was founded a decade ago by a former Google employee Peter Szulczewski. It has over 100 million monthly active users globally. The company’s website says that around 2 million products are sold on the platform on a daily basis.
WISH went public last month by selling 46 million shares at $24 for total proceeds of $1.1 billion, giving the company a market value of $14.1 billion. Its IPO came at a time when another wave of the Covid-19 was driving traffic on e-commerce websites including WISH.
ContextLogic shares traded mostly below their IPO price during December. However, the stock rallied in the first week of 2021, gaining more than 17 percent during the first five trading sessions. If we look at the company’s recent sales performance, it generated revenue of $1.7 billion during the first 9 months of 2020, translating to a surge of 32 percent on a year-over-year basis. However, its loss widened to $176 million during the same period, versus a loss of $5 million in the comparable period of 2019.
Nevertheless, most analysts are bullish on ContextLogic. Deutsche Bank on Monday issued a “Buy” rating for WISH with a price target of $26 per share, saying the company’s addressable market will increase over time.
Meanwhile, JPMorgan also initiated coverage of ContextLogic with an “Overweight” rating, citing significant growth potential of the company. JPMorgan analysts wrote in a statement, “We expect Wish to deliver more consistent 20%-plus growth over the next couple years as it moves beyond COVID-19-driven supply constraints and fully benefits from its recently established logistics network.” The research firm set a price target of $30 per share for the stock.
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WISH shares climbed 14.23 percent on Wednesday and 17.60 percent on Thursday following the positive ratings from analysts.
Disclosure: No positions. This article is originally published at Insider Monkey.