$WISH. Other Evidence Suggests That WISH Stock Is a Bull Trap
Beyond the possibly faulty short-squeeze argument, WISH stock has other issues to worry about as well.
First, on a technical basis, the optimism for shares has died down in recent sessions relative to the massive gains we’ve seen previously. Perhaps the astute traders of WISH saw that further upside was less probable.
Secondly, though, Contextlogic doesn’t provide the greatest financial performances. Yes, the company generated $2.54 billion in revenue in 2020, up nearly 34% from 2019’s result. However, during the same period, WISH’s operating income loss expanded to $631 million from a loss of $144 million. That’s not what investors want to see, particularly for such a relevant sector like e-commerce.
All told — while I can appreciate why someone would want to trade WISH stock given all the social media fervor — both the trading tactic and the fundamental catalyst appear flawed here.