Shares of ContextLogic (NASDAQ: WISH), the parent company of the discount e-commerce platform Wish, soared nearly 40% on Feb. 13 after Citron Research posted a series of bullish tweets regarding the stock. Citron claimed that after seeing the robust growth of Pinduoduo's (NASDAQ: PDD) cross-border platform Temu in the U.S. market, it believed it was becoming "hard to bet" against Wish's similar business model.

Yet I don't think those claims make any sense. Temu is actually an overseas extension of Pinduoduo's core e-commerce platform in China, while Wish is a stand-alone platform that relies heavily on third-party sellers in China. Pinduoduo is firmly profitable, so it can afford to subsidize Temu's loss-leading strategies in the U.S., while Wish is deeply unprofitable. Temu could also be pulling shoppers away from Wish as it expands across the U.S. market.

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Source Fool.com