While retail investors play an essential role in the stock market, institutional investors usually dominate this space. However, the 11 million-member subreddit WallStreetBets (WSB) surprised everyone by dominating the investment performance of…
GameStop Corp.’s (GME) and AMC Entertainment Holdings, Inc.’s (AMC) shares earlier this year, causing massive short squeezes in both.
According to a Digital Market News report, amateur investors now account for approximately 23% of all equity trading in the United States, compared to just 10% in 2019. And following the GME and AMC short squeezes, several other stocks skyrocketed in price on the power of retail investors. While not all WSB stocks possess fundamental strength, they do gain based on retail traders’ interest in them.
WallStreetBets stocks ContextLogic Inc. (WISH – Get Rating) and SmileDirectClub, Inc. (SDC – Get Rating), which are currently trading at below $10 per share, could be good additions to one’s watchlist. Wall Street analysts expect these two stocks to rally by more than 39% in the coming months.
ContextLogic Inc. (WISH – Get Rating)
San Francisco-based WISH is a mobile e-commerce company across Europe, North America, South America, and internationally. The company operates a Wish platform that connects users to merchants and provides them with marketplace and logistics services.
On October 4, 2021, WISH announced a partnership with the state-owned Spanish carrier, Correos. Alan Small, Senior Business Development Manager for WISH in Europe, said, “We are delighted to be working with one of the world’s largest and most respected logistics companies to expand our presence in Spain. Spanish merchants have a lot to offer, particularly when it comes to high-quality toys and electronics. This partnership aligns closely with our goal of working with more local suppliers on a global scale.”
WISH’s product boost revenue came in at $50 million for the second quarter, ended June 30, 2021, up 11.1% year-over-year. The company’s logistics revenue increased 125.7% year-over-year to $228 million. And its net loss came was $111 million, compared to $128 million in the year-ago quarter.
For its fiscal year 2022, analysts expect WISH’s revenue to be $2.22 billion, representing a 1.2% year-over-year decline. However, the company’s EPS is expected to increase 88.9% year-over-year in the current year. In addition, its EPS is expected to grow at a 53.9% rate per annum over the next five years.
The stock has gained 4% in price over the past month to close yesterday’s trading session at $5.21. Wall Street analysts expect the stock to hit $8.61 in the near term, which indicates a potential 65.3% upside.
Click here to check out our E-commerce Industry Report for 2021
SmileDirectClub, Inc. (SDC – Get Rating)
Oral care company SDC in Nashville, Tenn., offers clear aligner therapy treatment. It is the creator of the first Medtech platform for teeth straightening and aims to democratize access to a smile by making it affordable and convenient for everyone.
On October 5, 2021, SDC announced…
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