Why Wish Stock Plunged Nearly 17% in December
Shares of e-commerce and logistics company ContextLogic (NASDAQ: WISH), commonly called Wish, plunged 16.6% in December, according to data provided by S&P Global Market Intelligence. The month started with an analyst downgrade, which caused the stock to fall. Later in the month, a high-level leader abruptly stepped away from the company, fueling concerns over Wish's long-term business prospects.
The tough times for Wish started on Dec. 2 when Kunal Madhukar, an analyst with UBS, downgraded the stock from buy to neutral, according to The Fly. To summarize, Madhukar believes revenue will be challenged in 2022 and expenses will remain high. In other words, what plagued Wish in 2021 could continue to affect it in 2022.
Image source: Getty Images.
Source Fool.com
