On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the biedexmarkets.com.com Publishing Guidelines.
ContextLogic (NASDAQ:WISH) stock is rapidly picking up steam in the r/WallStreetBets community. The company behind the e-commerce platform Wish is being raised up by retail investing fiends amidst the meme stock rally. Because of this, the share price is really popping on today’s trading session.
WISH stock hasn’t been having a terrific time since its IPO in late 2020. In fact, on its first day of trading back in December, the price of the stock dropped 16% below its IPO price point. The stock’s value only eclipsed its $25 IPO price once, for a brief few days in January fueled by the pump of GameStop (NYSE:GME) and other early meme stocks.
The company has seen a fair share of criticism that justifies the price floundering. Many see the retailer as an inferior imitation of Amazon (NASDAQ:AMZN). Business Insider went so far as to directly compare the experience of shopping on both platforms, and came to the conclusion that Wish fails to capture the same experience and quality as Amazon. For these reasons, many investors are betting on the company to fail just six months out of its public offering. Over 20% of the WISH float is short.
For these reasons, Reddit has decided to put effort into buoying the stock, if only to spite those shorting a significant portion of the float.
r/WallStreetBets Throws Support Behind WISH Stock
WISH stock is an overnight sensation on the r/WSB platform. Mentions of the stock on the message board have increased by over 4,000% in just 24 hours. Users are showing their hubris with massive WISH investments. The retail trading hub is pivoting with incredible speed to the play after lifting off with GME and AMC Entertainment (NYSE:AMC).
Trading volume tells you everything you need to know about retail traders’ faith in WISH. Today’s volume is eclipsing 130 million shares, a jaw-dropping figure when considering WISH’s 9.5 million daily average. WISH stock is up nearly 50%, trading hands currently at $11.42.