Today, investors in ContextLogic (NASDAQ:WISH) and WISH stock are seeing double-digit gains on very heavy volume. Currently, more than six times the average daily volume has been seen with WISH stock today.
This move comes amid heightened interest in ContextLogic as a meme stock. The r/WallStreetBets community has fallen behind ContextLogic in a big way. And as we’ve seen with so many meme stocks of late, a little momentum is all it takes to shoot very high, very quickly.
Since the company’s IPO in late-2020, shares of WISH stock haven’t performed well. ContextLogic went public at $24 per share, and hasn’t traded above this level since the latest meme rally in late-January. Since then, shares have slowly and steadily deteriorated to the $10 level. Today’s bump of more than 12% has brought shares above the $11 level.
Why all the optimism in this name? Well, it turns out, there’s more going on with ContextLogic than simply a meme rally. Let’s dive into the news that is driving shares of this e-commerce player higher today.
PrestaShop Partnership Taking WISH Stock Higher
Today, ContextLogic announced a two-year deal with French e-commerce platform PrestaShop.
This deal immediately adds more than 300,000 merchants and brands on the PrestaShop platform to the Wish marketplace. Investors appear to be cheering the integration between these two companies, as impressive synergies get priced into WISH stock today.
ContextLogic’s Wish platform is aimed at providing high-quality products at affordable prices to its clientele. The hope is that this partnership with PrestaShop will provide a key growth catalyst as it will improve the overall shopping experience of its customer base. Additionally, the company is hoping to leverage the brand value PrestaShop merchants provide to selection and SKU growth over time.
This deal appears to be beneficial to both parties. However, for investors in WISH stock, this catalyst appears to be just what the doctor ordered. How much momentum ContextLogic will have from here remains to be seen. That said, this is a stock which is red-hot right now.
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.