You know how everyone in the Star Wars universe says “the force is strong with this one”? Well, the “meme force” is strong with ContextLogic (NASDAQ:WISH). WISH Stock has been jumping for a while now due to meme mania. And it refuses to stop.
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Yet again, the stock is moving higher. This is especially impressive, because the market is bleeding red today. WISH stock is producing a huge alpha on meme mania alone.
And, amongst all the meme madness, ContextLogic just inked a two-year deal with a leading online e-commerce platform, which caused shares to rise nearly 13%.
They’re succeeding on their own, and the meme crowd’s attention is a nice bonus.
Buy WISH Stock, Not the Hype
As we’ve said before, meme mania won’t last forever. But it will clearly last longer than most people think.
There are essentially two classes of meme stocks — one-hit wonders and the durable, star stocks. The former are targeted by retail investors for up to a few days, go to “the moon” briefly and then get forgotten in the sands of time. The latter, the durable stars, get transformed into retail trading favorites that persist and maintain their staying power. Once you’ve bumped into that second group, which is rare, you get a stock that stays high on meme hype.
AMC (NYSE:AMC) and GameStop (NYSE:GME) fit into this group. Their stocks have been on retail investors’ radar for far longer than less fortunate meme stocks. And because of that, they’ve been experiencing surprising success.
WISH may be entering that territory now. The stock has remained elevated on meme hype for a while now, so don’t be surprised if retail investors continue pushing this stock higher.
It also helps that Wish.com fits the same characteristics as AMC and GameStop’s offerings — things that retail investors, who are normally younger consumers, are fond of and use on a quasi-regular basis. Because of this, we think WISH stock has a strong near-term outlook.
Long-term, as we’ve previously stated, we’re huge believers in the online, value-first shopping industry and in ContextLogic’s competitive advantage in this space. We think the “dollar store” shopping experience will increasingly be virtualized over the next few years. And we think Wish.com will lean into its strong, data-driven tactics to create superior, hyperpersonalized user experiences that enable the company to remain “top dog.”
Marketplace effects will also help, as Wish.com is already where consumers go to find super cheap stuff.
With the near and long-term outlooks healthy, WISH stock looks like a buy today.
But it’s not the only high-growth, high-return stock on my radar today.
In fact, I have more than 40 hypergrowth stocks in my Innovation Investor newsletter service that could score investors Amazon-like returns over the next months and years.
These stocks include the world’s most exciting autonomous vehicle startup, a world-class “Digitainment” stock creating the building blocks of the metaverse, a company that we fully believe is a “Tesla-killer,” and many more.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.