Wish stock is one of the best options for investors who are looking to buy stock in an up-and-coming company. Founded by Piotr Szulczewski and Danny Zhang in 2010, Wish is an American online e-commerce company. They offer a wide selection of products for customers to choose from.
The company has been criticized for its sluggish growth in recent months, but investors should not dismiss the stock just yet. With its market cap less than half of its cash, Wish is an incredibly inexpensive buy. However, investors should make sure they do their due diligence before buying the stock. If you’re looking to invest in the company, be aware that the company is highly dependent on cross-border sales.
Though the company’s growth was slowed by the loss of millions of monthly active users in the second half of 2018, it has a solid balance sheet and will likely not go under anytime soon. Its debt-to-equity ratio stands at just 0.5, and this could pose a problem for the company as it seeks new sources of funding. However, Wish has no immediate plans to go bankrupt – it currently has $947 million in cash equivalents, as well as a large amount of marketable securities.
The company was one of the hottest meme stocks during the 2021 meme stock craze, but its shares have plunged 97% since their peak in late January. Its shares are now worth 70 cents, which is the lowest price in company history. If you’re looking for a cheap stock, consider purchasing ContextLogic (WISH).
While Wish is a popular Chinese e-commerce platform, it also has some weaknesses. For example, it took a long time to receive products and process returns. And it had lax quality control, which made it an easy target for unscrupulous merchants to sell counterfeit or low-quality goods. Other cross-border marketplaces, like Alibaba’s AliExpress, have much more efficient logistics and tighter quality control than Wish.
The company’s quarterly results were some of the worst for a publicly traded retailer. Its revenues plummeted from $656 million in Q2 ’21 to just $134 million in Q3 ’21, and its gross profit margin fell from 59% to 31%. Moreover, its monthly active users fell by two-thirds from 90 million to 23 million. As a result, Wish is in danger of becoming a value trap.
Although Wish’s revenue has climbed 75% year-over-year in the first quarter of 2021, it has struggled to maintain profitability in the face of rising costs and a worldwide pandemic last year. Moreover, the company has struggled to add more international sellers, which has led to complaints about fake goods. Additionally, Wish is vulnerable to higher tariffs and an unresolved trade war.