Meme mania refuses to stop for ContextLogic (NASDAQ:WISH). WISH stock continues to be one of the most highly mentioned tickers on Reddit, remaining at an elevated level. As of Monday, the WISH stock price is up another 5% already.
There’s a clear division between stocks that are durable success stories and those that are one-hit wonders.
Stocks that don’t pique Reddit’s interest in all the right ways are the ones that don’t gain any benefit in the long term. Social momentum drives these stocks high, but then the support for these stocks wanes, leaving prices to plummet.
The other variety of meme stock, which is what WISH stock could end up being if it can secure its position as a retail favorite, would signify a more sustained, genuine interest in the stock from the social media crowd.
WISH Stock Is Here to Stay
It appears that WISH stock is transitioning from “one-hit wonder” meme stock to “durable success” meme stock. And we believe this makes a ton of sense.
For one, the team behind the meme stock is actually fundamentally strong. An ex-Google (NASDAQ:GOOG) engineer founded ContextLogic, and their team also includes multiple other top tech executives.
Their product, Wish.com, is a hypergrowth value-first mobile e-commerce that sits somewhere in between “digital dollar store” and “digital garage sale.”
And we don’t see any reason Wish.com won’t continue to be successful. If something can be digitized, it will be digitized.
And we believe consumer demand for cheap goods is a “forever market” with steady demand drivers.
Secondly, WISH stock is fundamentally undervalued, and not just by a little. The consensus price target is up near $20. The sales multiple ex-cash cash is a hair over one.
So, when it comes to WISH stock, you have a strong company, an undervalued stock and a great deal of social momentum. And that’s a winning recipe for near-term share price appreciation.
Which is why, long-term, WISH stock will score investors big returns.
But ContextLogic is not the only meme stock with strong fundamentals on my radar today.
In all, I have more than 40 hypergrowth stocks that could score investors Amazon-like returns over the next months and years. Some of which have done particularly well during the meme stock rush.
These stocks include the world’s most exciting autonomous vehicle startup, a world-class “Digitainment” stock creating the building blocks of the metaverse, a company that we fully believe is a “Tesla-killer,” and many more.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.