Shares of ContextLogic (NASDAQ:WISH) tanked about 23% in yesterday’s trading session after the company disclosed plans for a 1-for-30 reverse split of its common stock. The company provides an e-commerce platform for selling products such as personalized products, accessories, and clothing, among others.
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Furthermore, the reverse stock split will reduce the number of shares to roughly 23.17 million from 695 million, subject to adjustment for the rounding up of fractional shares.
ContextLogic undertook the move to comply with the NASDAQ’s minimum $1 per share bid price requirement. Since September 16, WISH stock has traded below $1.
The stock will begin trading on a split-adjusted basis at $9.81 per share, after the markets open on April 12, 2023. It is worth mentioning that WISH stock fell 7% during pre-market trading.
What is the Prediction for WISH Stock?
ContextLogic is currently dealing with a number of challenges. The business was unable to set itself apart from rivals because it failed to create a competitive moat.
Additionally, the Q4 results paint a disappointing picture. ContextLogic saw a 55% year-over-year decline in active users on the platform, and its revenue dropped 57% to $123 million.
On TipRanks, WISH stock has a Hold consensus rating, which is based on one Buy, one Hold, and two Sells. Meanwhile, the average price prediction of $1.50 mirrors upside potential of 358.86% from the current level.
Furthermore, WISH has a Smart Score of 1 on TipRanks, indicating that it is likely to underperform the market.
