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$WISH for NASDAQ:WISH by FactorFour

At $6.87, the stock is down more than 60% year to date and far below its $24 initial public offering price.
$WISH posted revenue of $656 million for the second quarter of 2021, down 6% year over year. Wish reported a loss of $67 million on an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis, compared to a profit of $16 million a year ago.
Both top-line and bottom-line figures missed Wish’s guidance of $715 million in revenue and adjusted EBITDA of negative $60 million.
For many holders, that’s a shocking turn of events.
After all, Wish had posted a 75% revenue surge in the first quarter of 2021, beating management and street forecasts.

So what’s the problem?

For a start, the global economy is gradually reopening thanks to rising vaccination rates.

As a result, consumers are spending less time at home, leading to a slowdown in online shopping which meant fewer app installs, declining daily user activity, and lower sales.

Despite the drop in engagement and user metrics, Wish’s revenue per buyer rose to $22, up 21% from a year ago.

In other words, while fewer customers spent time and money on Wish, those who did use the platform spent more.

This suggests Wish may have struck a chord among its biggest fans — and that’s a positive sign.

The question is whether Wish can build on this success and convert more users into loyal ones.

When you look at the little chart we have of $WISH it’s formed a falling wedge on the daily chart and price is currently sitting at support.

I suggest to watch this level in case of a break below or a break to the upside.

Keep your eyes on this.

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