Right this moment, buyers in ContextLogic (NASDAQ:WISH) and WISH inventory are seeing double-digit features on very heavy quantity. At present, greater than six occasions the typical day by day quantity has been seen with WISH inventory at present.
This transfer comes amid heightened curiosity in ContextLogic as a meme stock. The r/WallStreetBets group has fallen behind ContextLogic in an enormous means. And as we’ve seen with so many meme shares of late, slightly momentum is all it takes to shoot very excessive, in a short time.
Because the firm’s IPO in late-2020, shares of WISH inventory haven’t carried out effectively. ContextLogic went public at $24 per share, and hasn’t traded above this stage for the reason that newest meme rally in late-January. Since then, shares have slowly and steadily deteriorated to the $10 stage. Right this moment’s bump of greater than 12% has introduced shares above the $11 stage.
Why all of the optimism on this identify? Properly, it seems, there’s extra happening with ContextLogic than merely a meme rally. Let’s dive into the information that’s driving shares of this e-commerce participant larger at present.
PrestaShop Partnership Taking WISH Inventory Greater
Right this moment, ContextLogic announced a two-year cope with French e-commerce platform PrestaShop.
This deal instantly provides greater than 300,000 retailers and types on the PrestaShop platform to the Want market. Buyers seem like cheering the combination between these two corporations, as spectacular synergies get priced into WISH inventory at present.
ContextLogic’s Want platform is aimed toward offering high-quality merchandise at inexpensive costs to its clientele. The hope is that this partnership with PrestaShop will present a key development catalyst as it is going to enhance the general buying expertise of its buyer base. Moreover, the corporate is hoping to leverage the model worth PrestaShop retailers present to choice and SKU development over time.
This deal seems to be helpful to each events. Nonetheless, for buyers in WISH inventory, this catalyst seems to be simply what the physician ordered. How a lot momentum ContextLogic could have from right here stays to be seen. That mentioned, this can be a inventory which is red-hot proper now.
On the date of publication, Chris MacDonald didn’t have (both instantly or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.