Another day, another meme stock. Today’s play of the day is ContextLogic (NASDAQ:WISH), a controversial stock even among retail traders themselves. After a rough Q2 earnings report, the company is seeing its stock downgraded by a major investing institution. Investors seem torn on the stock, and WISH stock price predictions offer no clear sentiment.
WISH is a short-squeeze play that has seen a fair bit of price movement over the last six months. However, in a bit of uncharacteristic evaluation of the stock’s fundamentals, the r/WallStreetBets subreddit is becoming torn. ContextLogic posted unsatisfying earnings for the second quarter, with sales shrinking by 18% and missing expected earnings and revenue estimates.
It’s in the wake of these earnings that institutions are beginning to seriously downgrade WISH stock. J.P. Morgan (NYSE:JPM) downgraded WISH from overweight to underweight and reduced its price target from $17 to just $5 per share.
Reddit’s r/WallStreetBets is seeing a surprising number of its users turning bearish on the stock due to its fundamentals. Comments left and right point to the company’s bad quality of products as reason to be bearish, and others claim to have always been bearish on the stock because of the low likelihood of future gains. Naturally though, others claim to be piling in, eager to capitalize on the bargain opportunity and deal further damage to short sellers.
WISH Stock Price Predictions: Analysts Clash Over the Future of ContextLogic
All of this bearish news is causing WISH stock to drill downward. The stock’s value is dropping over 19% on the news of J.P. Morgan’s downgrade. Transaction volume is huge, with 189 million shares trading hands against the stock’s daily average of 68 million; it’s likely this volume is equal parts selloff and bargain buying.
But what does the future of WISH stock look like among financial analysts? Let’s take a look at some WISH stock price predictions and see:
- Credit Suisse analyst Stephen Ju sees the stock booming back upward. Ju is placing a $19 price point on WISH.
- John Blackledge of Cowen & Co. is setting a $10 price point for the stock.
- Loop Capital Markets’ Laura Champine expects WISH stock to hit her price point of $15.
- Stifel Nicolaus analyst Scott Devitt advises investors to hold their WISH stock and prepare for a price point of $8.
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 InvestorPlace.com Publishing Guidelines.