Forget Wish; Buy These 3 E-Commerce Stocks Instead
ContextLogic's (NASDAQ: WISH) Wish was one of the most disappointing IPOs of 2020. The e-commerce company went public at $24 per share last December, but it started trading at $22.75, closed at $20.05 on the first day, and remains well below its IPO price as of this writing.
Wish serves over 100 million monthly active users (MAUs) in more than 100 countries, but it's still growing at a much slower rate than larger e-commerce companies like Amazon. Most of Wish's merchants are located in China, and it's been dogged by complaints regarding counterfeit goods, long shipping times, and difficult returns. Wish's revenue rose 34% to $2.5 billion in 2020, but its net loss widened from $129 million to $745 million. Analysts expect its revenue to increase 24% this year, but its bottom line to remain in the red.
Wish's stock price recently popped after attracting some attention from Reddit traders, but I believe investors should ignore the recent noise and stick with three better e-commerce stocks instead.
Source Fool.com
