WISH was down by 10.30% in the last open market session and reduced the price to $15.94. However, in intraday trading, the stock price increased by %0.44.
ContextLogic (NASD: WISH) is the parent company of Wish. Wish is known as the largest and fastest expanding global digital business platform; specifically for e-commerce and online-retail companies. The mobile user and interface experience is one of the most innovative and uniquely personalized because it is created using Data –Science to keep upgrading its services.
What caused the surge for Wish stock?
The surge in the stock prices is due to the fact that Wish (NASD:WISH) released its Fourth Quarter Report within which is a lot of positive news regarding its operational and financial performance.
The company released its fourth-quarter report on 8th March 2021; the Wish Founder and CEO Peter Szulczewski highlighted the fact that strong demand for their Marketplace and the company’s logistic services is what drove total Q4 revenue growth of 38% year over year. The report highlighted that core marketplace revenue (per active buyer) had drastically increased 66% year over year and incremented 25% over the previous quarter.
Stage set for Wish’s online platform since the pandemic
Furthermore since the inception of the pandemic, the local/physical based commerce and retail-businesses have also seen a shift towards the online and e-commerce platform. Consumers started preferring online e-commerce platform due to increased convenience, efficiency and access.
This is exactly the spotlight in which Wish’s unique business could shine because it is based on online personal and visual browsing experience adapted to give same feeling as normal physical retail store, through a mobile. To enhance this experience further, the Company has extended the review of its product’s quality to User-Generated-Content with over 85 million ratings and 10.5 million images-meaning that the customers customize the pictures for the brand description.
What do the fundamentals look like in the future?
The operational basics of the company are further solidified by its ever increasing market-share and expansion of the merchant network. In the fourth quarter, the number of U.S merchant network tripled (435%.) and overall Monthly Active Users increased by 19% year over year. The Company even allowed logistic-application-use for non-Wish merchants.
Investors should look forward to more positive news about this stock as CEO Peter, stated his vision for the Company in 2021 to expand the affordable world-class e-commerce platform further through acquisitions and monetization. This will be specifically done by increasing the logistical infrastructure and scaling of Wish Local, which is the platform in which small businesses can partner up with Wish.