Curious Case of $WISH
Wish is one of the largest and fastest growing global ecommerce platforms, connecting millions of value-conscious consumers in over 100 countries to more than half a million merchants around the world.
In 2015, Amazon had offered $10 billion cash but WISH walked away.
Expected revenue for 2021- $3.25 billion. Cash on balance sheet- approx. $2 billion.
WISH is also most downloaded e-commerce app in the world for last 3 years. It combines technology and data science capabilities and an innovative discovery-based mobile shopping experience to create a highly-visual, entertaining, and personalized shopping experience for its users.
On Dec 2020 it went public at $24 and by Feb 2021 price had climbed to $32. Since then it has been down hill partially due companies low projection for revenue growth due to pandemic . As we all know that pandemic has adversely impacted low income groups in the world who are primarily WISH customers.
Since economies are reopening it will have positive impact on the WISH.
Current stock value of $6 billion and with cash of $2 billion, Enterprise Value is only $4 billion i.e. 1.25 times expected 2021 revenues.
If shares are being shorted due to impeding expiry of lock up period next week, it is a good buying opportunity because early investors will not sell the stock at this dirt cheap price and shorts have to cover at higher price after-lock up period.
via r/wallstreetbets https://ift.tt/3qhG8Zq
June 11, 2021 at 09:20AM