In recent times, Wish (NASDAQ: WISH), operating as ContextLogic, has become one of the most discussed stocks on Reddit’s WallStreetBets forum due to its unconventional business model and its high levels of short interest attracting retail investors. In June, shares gained an eye-popping 70% thanks to increased interest in the stock from meme stock investors. However, this rapid rally didn’t last, and Wish stock is now down almost 20% since the start of July.
With this heightened interest from the meme stock community, shareholders are bracing themselves for further volatility once the company reports earnings for the second quarter this week.
In addition, with many physical stores reopening their doors to the public as lockdown restrictions lift, e-commerce companies are expecting a significant slowdown in growth. So, what can shareholders expect from Wish’s Q2 earnings?
When is Wish’s earnings date?
Wish will report its Q2 earnings report on Thursday, 12 August at 5:00 PM Eastern Time.
How can I listen to Wish’s earnings call?
To listen to the earnings call and to access the transcript, simply visit Wish’s Investor Relations page on its website and you find the report in its Quarterly Results section.
What to expect from Wish’s earnings
Let’s take a look in the rearview mirror first.
In Q1, Wish smashed estimates, posting revenues of $772 million, up 75% year-over-year (YoY). However, these results represented an increase in its net losses to $128 million in Q1, compared to only $66 million in the year-ago period.
Notably, its ProductBoost revenue also jumped 14% YoY in Q1 while logistics revenue was up a staggering 338% YoY.
While investors will be hoping for another revenue beat, a reduction in net losses would also be great news.
For the second quarter, Wish is expected to report a net loss of $0.10 per share. Wall Street also expects it to bring in revenues of $722 million, which is significantly below the $772 million it posted in Q1. Meanwhile, Wish has estimated sales of between $715 to $730 million, which would account to a 2% to 4% YoY rise.
Wish has previously already warned investors that it is cautiously looking at 2021 due to the new coronavirus variant spreading pandemic which might put pressure on the number of cash shoppers have to spend if the economy slows. Even e-commerce leader, Amazon, noticed a slowdown in growth in online shopping as pandemic restrictions faded. However, as we are all aware e-commerce is here to stay and this won’t change even if stay-at-home trends fade.
On the call, shareholders will also be keen to hear how Wish’s newer initiatives, including Wish Local, are performing.
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Nicole's favorite stock is Etsy because she loves its original and handmade items. She believes people are going to stop buying mass-produced items and start purchasing ‘one of a kind’ fashions and furnishings. In a world of sameness, Etsy has the advantage.