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- ContextLogic, the e-commerce company that runs the Wish platform, rallied 22% Monday.
- The company was the top-hyped stock on Reddit investing threads like Wall Street Bets.
- "Wish is the play this week," said one Redditor.
- See more stories on Insider's business page.
Shares of ContextLogic jumped as much as 22% Monday, as retail traders on Reddit investing threads touted the e-commerce stock as the play for the week.
ContextLogic, the San Francisco, California-based company that operates the Wish ecommerce platform, was the top-hyped stock on Reddit investing threads like Wall Street Bets Monday, according to data from HypeEquity. Retail traders were targeting $14-$16 per share, HypeEquity founder Travis Rehl said in an email to Insider. Some traders even mentioned a price as high as $50 or $100.
"WISH is the play this week," said one Redditor with 12,500 "karma points" on the site. The user didn't immedately respond to Insider's request for additional comment.
Another Redditor, who posted what's known as a "DD" or "due diligence" about the stock, said "WISH is more then a meme it has actual fundamental value."
In a response to Insider, the Redditor said the stock has been trading at around $10 but should be valued around $23 due to expected revenue of $3.2 billion this year.
"Industry average of 4.5 times revenue meaning a base valuation of $14.4bil and a price/stock of $23," the Redditor said.
About 5% of comments from Redditors revolved around short selling, HypeEquity data showed. The short-volume ratio for the stock is 15%, according to data from Fintel.io.
Over the weekend, the stock ranked fifth among memes on Reddit, according to Quiver Quantitative, falling below retail-trader favorites, AMC Entertainment, GameStop, Tesla, and BlackBerry.
Shares of the discount ecommerce platform began their rise earlier this month when the company became a meme-stock, a.k.a., a favorite among retail traders mobilized on social media. So far this month, the stock has rallied about 75%. Other companies, such as Clean Energy Fuels and Torchlight, also have joined the meme-stock ranks in June amid renewed interest from retail traders.
Since going public in December, though, shares of ContextLogic have lost nearly half their value. The company reported a wider-than-expected first-quarter loss last month and has said the pandemic has had a greater impact on its budget-conscious customer base, MarketWatch reported previously.