The purchasing platform wishes to be withdrawn from France

ohonline retailer Wish (TO WISH), operated by ContextLogic, has long been known for its unusual product lines. YouTube is full of videos involving people ordering things from Wish, from gaming PCs to insanely cheap handguns and bulletproof vests.

The quality of the items on Wish is often extremely variable, and it is likely that this mix of product quality has resulted in a country shutting down Wish completely. This kind of hostility isn’t good for the long-term prospects of any business, and that’s why I’m bearish on Wish. (See Best Stocks from Analysts on TipRanks)

Looking at Wish’s stock charts for the year so far, it’s basically the story of a disaster unfolding. In early 2021, things were looking surprisingly good for Wish. Most of January was spent climbing towards the $ 30 range, which it finally broke on January 28, with a closing price of $ 30.07 per share. It was then that disaster struck and the business began to collapse.

Mid-April saw a slight rally, but even that was a rally to around $ 15 a share. It was also the start of a second step down. June offered new hope for a recovery, but even $ 15 was too much to ask this time around, and the company began its third step down. Today, Wish is trading in the below $ 4 range. (See Wish stock charts on TipRanks)

The latest news will undoubtedly hit fans of Wish hard, especially in France. The entire country has now been ordered to remove Wish from its search engine results and online platforms. French government authorities have raised concerns about the safety of the products for the move.

The French government consumer agencies, in particular the Directorate-General for Competition, Consumption and the Fight against Fraud (DGCCRF), analyzed the site and found that a significant number of products on the site were “Dangerous”.

The agency sampled 140 products and found that 45% of toys, 62% of jewelry and 90% of electrical devices were dangerous in one way or another. The agency noted that Wish responded quickly, removing items identified as unsafe within 24 hours. However, items are often returned in different forms later.

Wish itself, meanwhile, doesn’t take that up while lying down. The company announced that it is “taking legal action to challenge what we consider to be an illegal and disproportionate act.”

If governments hate you, that’s a bad sign

I had pretty much the same issue with Alibaba (BABA) that I have with Wish. This time around, however, most analysts seem to support my position here. Anytime a government is deliberately targeting your business by name — as opposed to just your industry — that’s a very, very bad sign.

Governments have disproportionate levels of power to respond to business. A business under fire from these powers will likely lose – and lose big.

Remember the end of 2020 when companies were delisted from the stock market in the dying days of the Trump era? Such a move is an unqualified disaster for businesses. We’re seeing something similar popping up here with Wish; removing it from search engines and the like will undoubtedly hamper Wish’s reach and sales potential.

Worse yet, the bulk of the content around Wish is doing it a disservice. Watching YouTube videos involving people ordering from Wish involves some of the most questionable products you can find online. I don’t know anyone else, but I’m not really that keen on “cheap Chinese armor”.

Granted, that’s not all Wish sells. There are some notable sights on the site that will undoubtedly make great collectibles and conversation pieces. The site advertises itself as ‘fun shopping’, and there is a perfect case for it.

However, when other sites start talking about you, using phrases like “Browsing Wish is like browsing a store from an alternate universe.” With cell phones at $ 30 and some items even sold for free, you must be wondering if the legitimacy of this site is just wishful thinking, “that is enough to make anyone doubt.

The Taking of Wall Street

When it comes to Wall Street, Wish has a moderate sell consensus rating, based on three suspensions and two assigned sales in the past three months. Wish’s average price target of $ 5.10 implies upside potential of 28.5%.

Analysts’ price targets range from a low of $ 4 per share to a high of $ 6 per share.


Wish occupies a place in the shopping ecosystem. By all reports, it fills that place pretty well. However, there are clearly potential issues ahead for Wish.

The economy is starting to pull back into recession, limiting the potential for discretionary buying. When shoppers limit discretionary buying, Wish takes it on the chin. Add whole governments that oppose it, and the situation only gets worse from there.

Wish has little room to go much further. So, those who want to try their luck on Wish can shop at insanely low prices right now. Be aware, however, that you will take a huge chance here. The complete shutdown of Wish seems much more likely than the sudden recovery of Wish to its January levels. This is why I am bearish on Wish.

Disclosure: At the time of publication, Steve Anderson does not have a position in any of the titles mentioned in this article.

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