Why ContextLogic Stock Is Getting Hammered

ContextLogic Inc WISH shares are trading lower by 14.87% to $0.61 during Friday's pre-market session after the company reported worse-than-expected fourth-quarter sales results.

What Happened: ContextLogic reported quarterly sales of $123 million, which missed the analyst consensus estimate of $152.02 million by 19.1%. This sales figure is a marked 57.4% decrease over sales of $289 million in the same period last year.

The company sees first-quarter adjusted EBITDA between a loss of $70 million or as high as a loss of $80 million.

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ContextLogic reported a fourth-quarter 2022 net loss of $110 million compared to a net loss of $58 million in the fourth quarter of fiscal 2021. The net loss per share was 16 cents for the fourth quarter of 2022 compared to a loss of 9 cents per share in the fourth quarter of fiscal 2021.

What Else: "Despite a dynamic and challenging macroeconomic environment, 2022 was a productive year for Wish as we continued the journey of transformation we initiated a year ago. While we are still in the early stages of the turnaround, I'm energized to see the tremendous progress across each of the foundational pillars," said Joe Yan, Wish CEO.

"As we enter fiscal year 2023, there remains much work to be done to put us back on the path to profitability and sustainable growth. We intend to maintain a disciplined cash flow and a relentless focus on unit economics to retain a solid financial foundation that will allow us to effectively maximize the business opportunities ahead."

Following the earnings print, Credit Suisse analyst Stephen Ju maintained WISH with an Outperform and lowered the price target from $5.70 to $4.40.

According to data from Benzinga Pro. WISH has a 52-week high of $2.58 and a 52-week low of 44 cents.