Investors in ContextLogic (NASDAQ:WISH) are seeing another red day. Today, shares of WISH stock are down more than 12% at the time of writing on overly-heavy volume.
Today’s move is a continuation of a rather consistent bearish decline in WISH stock. Shares of this mobile e-commerce company have continued on a downward trajectory in recent months. Since hitting a high of $32.85 earlier this year, WISH stock has declined more than 75%.
Given the heightened level of short interest in ContextLogic, one might assume this stock could be a candidate for a short-squeeze discussion among retail investors. Indeed, the company’s certainly in this territory, with a short volume ratio of 18% at the time of writing.
Let’s dive into why ContextLogic has seen so much downward pressure of late.
WISH Stock Down on Multiple Factors
ContextLogic is a company many have touted as a cheaper e-commerce marketplace option compared to high-flyers like Amazon (NASDAQ:AMZN). Indeed, the search for discount e-commerce options provides few options today.
That said, it appears ContextLogic has lost most of its IPO luster. Given the relative underperformance of recently listed companies of late, perhaps this move can be tied mainly to broader market price action.
Indeed, considering where shares are trading at right now, compared to the company’s $24 IPO price, some investors may be enticed to consider WISH stock at these levels.
However, ContextLogic has its own issues shareholders have been battling of late.
Among these, relatively poor earnings from ContextLogic have provided little in the way of investor enthusiasm. The company reported a wider-than-expected loss earlier this month of $128 million. ContextLogic did report rather stellar revenue growth of 75% year-over-year. However, it appears investors have looked for more in the way of profitability from this name out of the gate.
Additionally, it was recently announced that Rajat Bahri, the CFO of ContextLogic, sold $1.6 million worth of stock on May 18. This sale was at an average price of $8.37 per share. Given the fact that shares are trading at $8.16 at the time of writing, it appears the market is taking a hint from insiders today.
On the date of publication, Chris MacDonald 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 InvestorPlace.com Publishing Guidelines.