ContextLogic (NASDAQ:WISH) stock soared last month on the back of meme mania. The retail crowd took a particular liking to this stock and pushed shares more than 50% higher in a matter of days.
That rally has since fizzled out in July, and meme traders have moved on to the next stock. We think it’s time to buy the dip, because WISH stock is as solid as ever.
We think it’s worth rallying behind ContextLogic once the meme stock craze has died down, because its strong underlying fundamentals will push this stock to $20 by the end of the year.
WISH Stock Is a Bargain at Its Current Price
The story here is fairly simple — people love discount shopping.
Despite everyone’s love for discount shopping, most of this variety of shopping still takes place in person, unlike other forms of shipping. Digital sales account for over 30% of total sales for apparel shopping and consumer electronics shopping, for example.
Sooner or later, some platform will emerge as the Amazon.com of discount shopping.
We believe Wish.com will be that platform.
For one, the company is already the largest online discount shopping platform on the planet. Therefore, they will continue to benefit from network effects inherent to online marketplaces. More buyers will attract more sellers, which will in turn attract more buyers, and so on and so forth.
We’re also extremely bullish on the people behind the company.
Wish.com isn’t run by retail folks — it’s run by leading software engineers and data scientists who are passionate about creating robust machine learning algorithms to create the most hyperpersonalized online discount shopping experience in the world.
Wish.com’s Team Grows Stronger
And the team is only getting better.
Just last week, ContextLogic announced the appointment of Farhang Kassaei as Chief Technology Officer.
Kassaei is a former big wig software engineer at Google (NASDAQ:GOOGL, NASDAQ:GOOG), where he “oversaw the development and roll-out of full-stack commerce capabilities across Search, YouTube, Assistant and Local, as well as Google Express local shopping and delivery products.”
We have faith that the tech-first team behind Wish.com will continue to create the discount shopping industry’s best machine learning algorithms. This will result in a platform where a best-in-class personalized shopping experience ultimately enables consumers to find the best products, at the best prices, at the best times.
If they can pull this off, then ContextLogic will someday be a very big company.
And WISH stock simply isn’t priced for that. At just $10, WISH stock is trading at just over 2X sales. That’s an absolute steal for a hypergrowth e-commerce company. Buy WISH stock now and enjoy watching it break $20 before the year is out.
ContextLogic’ stock is but one of my top picks that, long-term, will score investors big returns … and it’s far from the only hypergrowth stock on my radar.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.