UPDATE: Oppenheimer Downgrades ContextLogic Inc (WISH) to Underperform
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Oppenheimer analyst Jason Helfstein downgraded ContextLogic Inc (NASDAQ: WISH) from Perform to Underperform with a price target of $4.00.
The analyst commented, "We believe the company is facing a perfect storm of negative challenges heading into 4Q. China accounted for substantially all marketplace/logistics in FY20, exposing WISH to a 393% increase in shipping costs. Further, with ad budgets shifting to Android, digital ad costs have remained elevated throughout 3Q, impacting customer acquisition/retention. Average CPMs are up 80% in 3Q21E while Similarweb data highlights 32% q/q decline in Android app downloads. Our $4x target assumes 0.7x FY22 sales, in line with slow growth marketplaces (GRPN, OSTK)."
Shares of ContextLogic Inc closed at $5.35 yesterday.
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