3 Things About Wish That Smart Investors Know
ContextLogic (NASDAQ: WISH), the parent company of the e-commerce platform Wish, went public at $24 per share last December. But the stock is only worth about $3.50 today, due to ongoing concerns about its decelerating growth, loss of monthly active users (MAUs), and lack of profits.
Wish served more than 100 million MAUs at the time of its IPO, but that figure had plunged to just 60 million in its latest quarter. Its revenue rose 34% in 2020, but analysts expect a 17% decline this year. Founder and CEO Piotr Szulczewski will step down next February, and the company expects its revenue to decline sequentially in the fourth quarter -- even after factoring in the busy holiday shopping season.
Regulators in France, one of Wish's top markets, also recently banned the platform amid allegations that its overseas sellers (mainly in China) sold fake, illegal, and dangerous products. All those challenges, along with its ongoing logistics and quality control issues, caused investors to head for the exits.
Source Fool.com
