Ecommerce company ContextLogic’s (WISH) shares have declined in price considerably over the past few months on investor pessimism regarding its CEO’s resignation, and closed yesterday’s trading session at $3.54. So, let’s evaluate if it is wise now to buy the dip in the stock’s price as the company continues to make consistent product and services innovation. Read on.Mobile eCommerce company ContextLogic Inc. (WISH) in San Francisco operates a discovery-based shopping platform, Wish, that connects users to merchants. On November 9, the company introduced the Wish Standards program to incentivize the delivery of quality products and other positive behaviors from its merchants. However, the stock has declined 27.3% in price over the past month and 49.1% over the past three months to close yesterday’s trading session at $3.54.
News that WISH’s CEO, Piotr Szulczewski, will be stepping down from his position no later than February 1, 2022, has added to investors’ pessimism. Devang Shah, an insider at the company, sold 94,940 shares on November 17. And lately, hedge funds’ interest in the stock has declined.
Furthermore, WISH said on Nov. 10 that its fourth-quarter revenue is expected to be below the third-quarter revenue despite the holidays. So, its near-term prospects look bleak.