WISH Stock News: Hey ContextLogic investors, mark your calendars for June 24th
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Today is yet another volatile day in the markets, with individual stocks bouncing around for no real rhyme or reason. Fortunately for investors in ContextLogic (NASDAQ:TO WISH), these moves have been on the upside. The impressive 12% rise in WISH stocks today is attributable to a quarterly rebalancing by the indices.
The Russell 3000 index Just announced its reconstitution, in which certain stocks are removed and others are added. ContextLogic was among the list of companies added to this exchange.
This reconstitution should take place on June 24. This essentially means that exchange-traded funds (ETFs) that track the Russell 3000 will be forced to buy WISH shares and exit positions in delisted companies. With more liquidity and buying pressure, prices are generally expected to rise in the short term. We often see this scenario play out in the crypto world when exchanges list various tokens.
That said, let’s take a look at what investors can expect as the June 24 deadline approaches.
Can WISH Stock continue to rally on June 24?
Like any short-term catalyst, investors are likely to play on momentum until it ceases to exist. Given that we are currently in the first trading session since the announcement, it is likely that most of the anticipation for the addition will be reflected today. Markets are looking to the future, which means this news is likely to have factored into WISH stocks within minutes of being announced.
That said, it is a significant catalyst for investors in this mobile e-commerce company. ContextLogic has been hit very hard in the current macro environment. With few positive catalysts, investors seemingly threw in the towel on this company while de-risking their portfolios.
Adding WISH stocks to the Russell 3000 could add some validity to its stature in the market. For the bulls of this company, this is a good thing.
That said, I’m staying on the sidelines with this unprofitable venture, simply because I think the waters are going to continue to be choppy for some time to come. This may be a good entry point for those looking to buy the dip. However, it is probably too early to tell whether the selling pressure we have seen has started to ease or not.
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As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.