WISH – INDUSTRY LEADING GROWTH & MARGINS TRADING AT 60% DISCOUNT ON 2022E EV/S
The main reason WISH was green today while most meme stonks were red is that this thing has fundamentals in spades. The bounce off of the well formed $8 bottom is just the first stop on the way to the range it should be trading in based on peer valuations $20-$25. FYI, the average of current analysts target prices is $23. Simple oversold new IPO that needs to revalue. After they report the next quarter the market will see that they were simply sandbagging their guidance. There is so much operating leverage in their business model that even a slight decrease in marketing spend will see them produce some serious EBITDA. On top of peer leading Revenue growth and Gross Margins they have the best balance sheet. In fact they are too flush with cash and I wouldn’t be surprised to see them kickstart a share buyback.
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June 11, 2021 at 12:23PM