$ContextLogic (WISH.US)$ High institutional owned stock: 96%...
$ContextLogic (WISH.US)$ High institutional owned stock: 96%. Meaning institutions have high control of this stock over retail traders. Could also mean it’s where the smart money is.
Last month’s lock-up expiration July 14 of 46mil shares price at $24. Wish ipo price is also at $24. For the near term i believe $20 is a possibility. Might consider safe play such as (short puts option strike price of $9 or $10) which i dont mind being assigned riding it to $18-$20 or a leap option with a target sell price $18-$20
“the greatest problem Wish faces is a clear path to profitability. It spent $470 million in sales and marketing expenses in the first quarter, which is more than its entire gross profit and accounted for 61% of revenue. The company has run into a catch-22 at this point as it needs to attract new buyers for its growth, but those who buy a product based only on low prices will typically only spend very little on the platform anyway. Breaking even in terms of EBITDA will be pretty tough going forward. Meanwhile, Wish is eroding its $1.6 billion cash balance with a loss of over $300 million per quarter in terms of free cash flow. The stock does seem pretty cheap for what it has to offer at a meager three times price-to-sales (P/S).”
Last month’s lock-up expiration July 14 of 46mil shares price at $24. Wish ipo price is also at $24. For the near term i believe $20 is a possibility. Might consider safe play such as (short puts option strike price of $9 or $10) which i dont mind being assigned riding it to $18-$20 or a leap option with a target sell price $18-$20
“the greatest problem Wish faces is a clear path to profitability. It spent $470 million in sales and marketing expenses in the first quarter, which is more than its entire gross profit and accounted for 61% of revenue. The company has run into a catch-22 at this point as it needs to attract new buyers for its growth, but those who buy a product based only on low prices will typically only spend very little on the platform anyway. Breaking even in terms of EBITDA will be pretty tough going forward. Meanwhile, Wish is eroding its $1.6 billion cash balance with a loss of over $300 million per quarter in terms of free cash flow. The stock does seem pretty cheap for what it has to offer at a meager three times price-to-sales (P/S).”
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