Why Is ContextLogic (WISH) Stock Rocketing Higher Today

Kayode Omotosho /
2023/03/31 1:31 pm EDT

What Happened:

Shares of owner of Wish e-commerce platform ContextLogic (NASDAQ:WISH) jumped 7.7% in the morning session after the Commerce Department reported that the personal consumption expenditures price index, a measure of inflation that the Fed monitors closely, rose by 5% in February compared to the same period last year, below expectations. This demonstrates that inflation is softening and may mean to the Fed that there is less urgency to hike rates further.

What is the market telling us:

ContextLogic's shares are very volatile and over the last year have had 100 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business. 

ContextLogic is down 9.5% since the beginning of the year, and at $0.44 per share it is trading 82.3% below its 52-week high of $2.5 from April 2022. Investors who bought $1,000 worth of ContextLogic 's shares at the IPO in December 2020 would now be looking at an investment worth $22.10.

Is now the time to buy ContextLogic ? Access our full analysis of the earnings results here, it's free.