ContextLogic Stock Takes a Dip on a Bull Market Day, Sinking 0.83% to $7.16
June 15, 2023
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CONTEXTLOGIC ($NASDAQ:WISH): On Friday, ContextLogic Inc. stock took a hit on the market, dropping 0.83% to $7.16 in the midst of a bull market day. This was significantly lower than the S&P 500 index, which rose 0.19%. ContextLogic Inc. is an e-commerce company that specializes in connecting shoppers with merchants and providing them with a variety of deals and discounts. The company uses its proprietary technology to create a personalized shopping experience for customers. It also offers an innovative digital marketing platform to help businesses increase sales and reach new customers.
However, the company has recently faced some headwinds as a result of the coronavirus pandemic, with many people shifting their shopping habits online. Despite this, ContextLogic Inc. remains a strong player in the e-commerce space and is expected to maintain its momentum going forward. Investors looking for exposure to the e-commerce sector may find ContextLogic Inc. an attractive option.
Analysis
GoodWhale conducted an analysis of CONTEXTLOGIC INC’s wellbeing. As per our Star Chart, we classified CONTEXTLOGIC INC as an ‘elephant’ type of company. This means that, after deducting its liabilities, the company is rich in assets. Thus, potential investors who are interested in a company with a strong asset base, may be interested in investing in CONTEXTLOGIC INC. We also found that CONTEXTLOGIC INC has an intermediate health score of 4/10, taking into account its cashflows and debt. This suggests that the company is likely to be able to sustain future operations in times of crisis. However, its strength in asset management is offset by weaker than average performance in areas such as dividend, growth and profitability. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Contextlogic Inc. More…
| Total Revenues | Net Income | Net Margin |
| 478 | -413 | -86.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Contextlogic Inc. More…
| Operations | Investing | Financing |
| -368 | 18 | -25 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Contextlogic Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 693 | 282 | 17.65 |
Key Ratios Snapshot
Some of the financial key ratios for Contextlogic Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -33.0% | – | -89.7% |
| FCF Margin | ROE | ROA |
| -77.0% | -60.4% | -38.7% |
Peers
There is intense competition between ContextLogic Inc and its competitors: eBay Inc, Amazon.com Inc, MercadoLibre Inc. All of these companies are vying for a share of the online marketplaces industry. Each company has its own strengths and weaknesses, and it is up to the consumer to decide which company they want to use.
– eBay Inc ($NASDAQ:EBAY)
eBay Inc. is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995, and became a notable success story of the dot-com bubble. Today, it is a multibillion-dollar business with operations in about 30 countries.
– Amazon.com Inc ($NASDAQ:AMZN)
Amazon.com Inc is an American multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has a market cap of 1.05T and ROE of 6.29%. Amazon was founded by Jeff Bezos in 1994, and it has since grown to become one of the most valuable companies in the world. The company’s success has been fueled by its focus on innovation and customer service. Amazon has developed a number of groundbreaking technologies, including Amazon Web Services, Kindle, and Alexa. Amazon has also been a leader in customer satisfaction, with its customer service rated as the best in the US by the American Customer Satisfaction Index.
– MercadoLibre Inc ($NASDAQ:MELI)
MercadoLibre is a leading e-commerce platform in Latin America. It has a market cap of $44.39B as of 2022 and a return on equity of 23.4%. The company enables businesses and consumers to connect and trade through its marketplace platform. MercadoLibre also offers payments, logistics, and advertising solutions.
Summary
ContextLogic Inc. (CONTEXT) experienced a 0.83% decrease in its stock price on Friday, bringing its share price to $7.16. This underperformance was in contrast to the strong performance of the overall stock market, with the S&P 500 increasing during the same trading session.
Investors should conduct further analysis in order to determine the reason behind the underperformance; however, it is worth noting that CONTEXT has had periods of strong performance in the past. Therefore, it may be beneficial for investors to consider the recent dipping stock price as an opportunity to buy CONTEXT at a discounted rate.
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