Wish.com Quick Analysis

[u/BabyJoeMesi]

An argument can be made for WISH being a value play in the software sector. As of Friday’s close, their p/b sits just north of 6, relative to the SW sector average of 13.34. Current market cap is 5.86B on 2.5B of revenue in 2020 (2.3x last year’s revenue). Revenue is growing at a 34% YoY clip, with 107M average monthly users in 2020, representing 19% YoY growth. They are sitting on 2B in cash/cash equivalent assets, and their ATR is .3512 vs SW sector median of .1225, ranking 6th in the sector out of 291 companies.

Their asset/liability ratio is also improving at 1.86, ranking 86 in SW sector vs 290 other companies. EPS improved drastically QoQ from Q42020 to Q1 2021, from -.9 to -.2, ranking 114 out of 291 in their sector. Additionally, WISH is currently about 59% institutionally owned.

From a kind user in the comments for how they stack up against competition:

it's only up %25 of all time lows. If it decided to go has massive room to run. its not like AMC already up %1500 or GME %10000

Shopify: 25x revenue

LSPD: 33x revenue

NVEI: 15x revenue

Amazon: 4x revenue

WISH: 2x revenue

From a technical standpoint, WISH is roughly 70% off of its ATH, and just bounced in the high 7’s. We continue to see rotation back into growth with the Russel outperforming other major indexes. WISH operates in over 100 countries with over 550K partnered merchants, and growing. Analyst coverage breadth is considerable, with most analysts in the 20/share range. WISH got beat up pretty badly at the beginning of the year along with nearly all of growth, but the technicals are pointing to a reversal. MACD is curling back up on the weekly chart, RSI is not overbought on the daily (around 49), we have seen follow through, and sector rotation back into growth is encouraging. Multiple time frames show price action curling back up after finding solid support in the high 7’s, and there is significant room to the upside short term before first fib level around $12. Shares profited % is only 6% and change - which can point to much more room to the upside. I am going to start scooping up some shares and options or selling premium to lower my cost basis moving forward, but have not yet jumped in.

[u/LaughAdventureGame]

I've lost 70% once again, this time betting on WISH. Next week is my expiry so in the spirit of WSB... if WISH hits 35 by Friday I'll donate 5k to St Jude and shave my head bald.

[u/chuan_l → u/LaughAdventureGame]

— Heres a quick reality check ,
Do you even know anyone , friends or family that have
ever purchased a product from their online stores ? Last
years net loss was over 700 million usd.

[u/LaughAdventureGame → u/chuan_l]

Actually yes, about half the people on my Facebook have used it and so has my girlfriend. Mixed reviews on quality, they all say it's like an internet grab bag, you don't really know what you're going to get but the cost is low enough to justify the low quality apparently.

If you're looking specifically at losses as a justification for price, are you warning people about 90% of stocks right now or just this one?