WISH - ContextLogic stock jumped 40% on Friday: here's the catalyst
2023-04-21 12:48:41 ET
Shares of ContextLogic Inc ( NASDAQ: WISH ) went up as much as 40% today after the eCommerce company announced a share repurchase programme.
How many shares will it buy back?
On Friday, the Nasdaq-listed firm confirmed that it plans on buying back up to $50 million worth of its stock.
The programme that will be effective through December 31 st , 2023 does not obligate ContextLogic to repurchase any particular number of shares. In the press release , CFO Vivian Liu said:
This share repurchase programme demonstrates the Board’s and management’s confidence in the future of our business and our commitment to creating long-term, sustainable value for our shareholders.
Versus its year-to-date high, ContextLogic stock is still down about 65%.
ContextLogic to report earnings next month
ContextLogic is scheduled to report its Q3 results in the first week of next month. Consensus is for it to lose $3.92 a share this quarter versus $1.8 per share a year ago.
The stock market news arrives only weeks after the California-based company executed a 1-for-30 reverse split . CFO Liu also wrote today:
We believe the current market doesn’t reflect the long-term value of our shares and this share repurchase programme will support our efforts to unlock the long-term value and opportunity we see ahead.
Last month, “WISH” teamed up with ShipSage to enable faster order fulfilment for U.S. merchants. Nonetheless, Wall Street currently has a consensus “underweight” rating on ContextLogic stock.
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