In my last article on WISH stock, I switched from skeptical to optimistic when it comes to this struggling online retailer’s comeback. However, given the time it’s going to take for said turnaround to happen, you could find yourself sitting in an underwater position for quite some time. That is, the chances a turnaround sends it back to $15, $20 or even $30 per share far outweighs the risk it falls to, say, $2 to $3 per share. Sure, some bullish on its comeback may believe risk/return is tilted in their favor. With this, another high double-digit move lower for this stock may not be out of the question. Market could start to agree, especially as factors like Fed tightening and higher interest rates push down what are still historically high valuations for stocks. In his view, shares should trade at a valuation far below its current price-sales, or P/S, multiple of 1.7x. Recently, our Dana Blankenhorn made the case why its valuation is still out-of-whack. That said, a shift in investor sentiment from risk on to risk off is bad news for investors in speculative plays like WISH stock.ĬontextLogic may not be as cheap as it seems at first glance. Instead, we could see just a textbook 10% correction. It may not be a meltdown on par with the March 2020 coronavirus crash or the 2008 financial crisis. There’s a significant risk the stock market will take a dive between now and the end of 2021.

7 Dividend Stocks to Buy With Yields Over 4%.Yet WISH stock may be set to move from where it sits today (around $6.50 per share), down to low single-digit price levels. With this, taking your time before buying may be the best move.ĭown by nearly 50% since July and 66% over the past six months, it may seem like this former high-flyer has already bottomed out. But between now, and when said comeback happens (late 2022 at the earliest), the stock may take another big tumble. I remain upbeat about WISH stock and its potential to ultimately make a comeback.

Play market