The Wish stock price surged on Monday as interest in meme stocks resumed. The ContextLogic stock rose by more than 5% to a two-week high of $14.80. This brought its total market capitalization to more than $8.6 billion. Other meme stocks like GameStop, AMC, and Bed Bath & Beyond also surged
ContextLogic stock flies
ContextLogic is an e-commerce company that runs Wish, one of the world’s most popular mobile shopping sites. The platform has more than 107 million monthly active users and 550k merchants.
The company generates more than $2.5 billion in annual revenue but it also makes more than $700 million in losses. This is a common feature among many young companies in their growth phase.
ContextLogic went public early this year and its stock disappointed. It dropped from an all-time high of $32 to a low of $7.65 after it published disappointing guidance. In the most recent quarter, the company said that its revenue accelerated by 40% year-on-year while the core marketplace revenue rose by 76%.
Further, its asset-light logistics business revenue increased by 4x YoY while Wish Express increased by 400%. Still, investors were disappointed by the number of users. It also guided that its revenue will be in the range of $715 million to $730 million.
The Wish stock price has become a meme stock owing to its relatively high short interest and the company’s business model. For years, YouTubers have ridiculed the poor quality of the products sold in its marketplace. So, what next for the Wish stock price?
Wish stock price analysis
The daily chart shows that the Wish stock price has been in a strong upward trend in the past few weeks. This has seen it rise by more than 100% from its lowest level this year. Today, the shares managed to move above the highest level on June 9 and the 23.6% Fibonacci retracement level. The 25-day and 50-day exponential moving averages (EMA) are also nearing their bullish crossover while the Relative Strength Index (RSI) has risen close to the overbought level of 70.
Therefore, the shares will likely keep rising as bulls target the 50% Fibonacci retracement at $20, which is about 30% above the current level. On the other hand, a drop below $10 will invalidate this prediction.