5 Investors Betting Big on ContextLogic (WISH) Stock


  • Founder and former ContextLogic (WISH) CEO Piotr Szulczewski has sold millions of shares of WISH stock this year.
  • Vanguard is the largest shareholder of the company as of the third quarter.
  • WISH stock is down more than 75% year-to-date (YTD).
The logo and information for the Wish (WISH stock) mobile app are displayed on a smartphone.
Source: sdx15 / Shutterstock.com

Shares of ContextLogic (NASDAQ:WISH) stock have gotten pummeled this year in light of declining consumer demand, inflation and competition from other e-commerce companies.

The company, better known by the name of its Wish e-commerce arm, reported dismal third-quarter earnings last month. Total revenue tallied in at $125 million, down a staggering 66% year-over-year (YOY). Core marketplace revenue totaled $40 million as well, down 78% YOY. Furthermore, logistics revenue was $74 million, down 50% from a year ago.

On top of that, Wish is still unprofitable, reporting a net loss of $124 million, equivalent to an earnings per share loss of 18 cents. During Q3 2021, the company had reported a net loss of $64 million and an EPS loss of 10 cents.

Interim CEO Joe Yan is hopeful about a company turnaround, however. Yan added the following in the Q3 report:

“With our business transformation underway, we are beginning to see positive operational results, including a sequential quarterly increase in order volume, declines in refund rates and customer order cancellations, and on-time delivery rate of approximately 92%.”

Meanwhile, founder and former CEO Piotr Szulczewski has been on an absolute selling spree. From August to October, he consistently sold hundreds of thousands to millions of shares of WISH stock almost every day. At the end of 2020, he owned more than 130 million shares. As of Oct. 28, that figure has declined to 26.73 million shares.

5 Investors Betting Big on WISH Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, 169 13F filers reporting own WISH stock, a decline of 11 funds from the previous quarter. In addition, the institutional put/call ratio lies at 0.34, up from 0.31. That’s equivalent to 3.51 million puts and 10.46 million calls, implying a bullish options stance.

With that in mind, let’s take a look at the top shareholders of WISH stock. Please note that this list only includes investors that filed a Q3 position update. For example, Formation Partners Fund owns 51.04 million shares, but that figure is only accurate as of Q4 2021.

  1. Vanguard: 43.04 million shares. Vanguard sold 776,354 shares during Q3.
  2. BlackRock (NYSE:BLK): 40.29 million shares. BlackRock purchased 2.52 million shares during Q3.
  3. Piotr Szulczewski: 26.73 million shares.
  4. GGV Capital: 25.70 million shares. GGV sold 5.12 million shares during Q3.
  5. General Atlantic: 18.28 million shares. General Atlantic purchased 1.4 million shares during Q3.

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On the date of publication, Eddie Pan did not hold (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.

Article printed from InvestorPlace Media, https://investorplace.com/2022/11/5-investors-betting-big-on-contextlogic-wish-stock/.

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