Capital is still optimistic about the e-commerce market! Wish platform has a bullish outlook

ContextLogic (NASDAQ: WISH ) stock price rose 16% in the five trading days last week , and investors are still optimistic about the e-commerce market!

ContextLogic , based in San Francisco, USA , is the operating company behind the famous e-commerce platform Wish . Like eBay, Wish allows sellers to list products on its platform and sell directly to consumers. ContextLogic is currently expanding its logistics business, reducing shipping time and lowering shipping costs. The company has successfully increased its monthly active users (MAU) from 21 million in 2015 to 107 million by the end of 2020, a five-fold increase.

In addition, ContextLogic has successfully attracted many new merchants to Wish . The Wish platform now has more than 550,000 partner merchants and more than 50,000 local partners. As the number of users and merchants on the Wish platform continues to grow, ContextLogic predicts that by 2025, the revenue of its advertising business may double to $100 million per quarter.

All these favorable factors have driven Wish 's stock price to continue to rise in recent days, but Wish 's market expectations are by no means smooth. Its stock price trend can be described as twists and turns, which also shows from one aspect that investors' expectations for e-commerce startups are not stable . ContextLogic's stock price has fallen 55% since its listing in December last year . After its initial public offering, the stock soared to a peak of $32.85 in late January this year , and then fell 68% to its current level. Affected by many factors such as the epidemic situation, ContextLogic's stock is now rising again after bottoming out at $7.52 per share at the end of May .

There are many factors that cause market expectations to fluctuate. In a survey released by ContextLogic, three-quarters of platform customers put the price of the product in the most eye-catching position, above terms such as brand or delivery time . The average price of goods sold on the Wish platform is less than $20. Although targeting low-income consumers may provide ContextLogic with a niche market, it also makes it difficult for investors to control its positioning .

Perhaps for this reason, Bank of America (NYSE: BAC ) recently downgraded ContextLogic from a previous "buy" rating to " neutral . " This move has attracted a lot of attention, but its $12 price target is the lowest rating for WISH stock at the moment , and other analysts' expectations are higher than this number . According to Nasdaq, among the 10 analysts who have made 12-month price forecasts for ContextLogic stock, the median target price is $17.50, and the highest estimate is $24.00 per share. One of them believes that ContextLogic 's stock price still has 67% room to rise.

Market analysts are generally optimistic about Wish , indicating that capital is still confident in e-commerce startups and the e-commerce market. Although Wish , operated by ContextLogic , is currently small in scale, less than half the size of other e-commerce giants such as eBay and Amazon , it is growing rapidly .

Wish Platform

Cross-border e-commerce market