Justin (00:00): It’s the official Wish IPO date, and a lot of people have been waiting for this. There have been some initial delays on the IPO, but we are glad to report that today, 16 December, Wednesday, the Wish IPO is going live. It is anticipated that the share will go live somewhere between 22 and 24 dollars per share. Now, if 2020 is anything to go by, we have seen that there is a lot of opportunities to raise capital. Wish is looking to raise somewhere in the region of 1.1 billion dollars with this IPO. That being said, we're going to quickly jump in and have a look at some fundamentals, what we know about the company. Then, at the end of this video, I’m going to give you my personal recommendation regarding whether you should be buying Wish IPO shares and what to do long term. Should you buy? Should you hold? Should you sell?
(00:59): So with that said, let’s quickly jump into Business Insider here, which has provided some fantastic insight into the company and its trading history. What we do know is that Wish has a parent company called ContextLogic based out of San Francisco. The Initial Public Offering is expected to be somewhere between the range of 22 and 24 dollars per share, and the offering is expected to raise 1.1 billion in funds for the company. With that said, Wish will go live on the Nasdaq today, the official IPO date. It is expected to trade under the ticker symbol WISH, W-I-S-H. Some of the things that have been reported on the company so far and what we do know is that the company was able to raise private funding in 2019 when it raised 300 million in cash from a funding round through General Atlantic. Back then, in 2019 August, the company’s valuation was 11 billion dollars. We also know that the firm had a valuation of nine billion back in 2017. That is quite a significant jump in a very short space of time—nine billion valuation in 2017, 11 billion valuation in August 2019. The company has also raised 2.1 billion in private funding since it was founded in 2010. It looks like Wish is on the right trajectory for all intents and purposes. It seems like they have the right strategy, and definitely, if 2020 is anything to go by, they will definitely raise a heap load of capital during this IPO.
(02:51): My personal prediction for Wish is that I think that the stock is going to rally very early on. I think we’ll see a debut at 24. I would not be surprised to see the stock move past 60 dollars, possibly even 70 dollars within the first couple of hours. If the Airbnb IPO is anything to go on, and I’ve said this in relation to Bitcoin as well, 2020 is proving one of those years where investors are desperate for growth. Investors are looking for stocks they can rally behind and definitely expect there to be a lot of institutional money going in behind Wish.com in this initial IPO. That having been said, I always turn to what I know in terms of my personal touchpoints with the company when investing. As you guys know, I only typically invest in shares via this channel, which I have dealt with the company personally. So I use their products and services, I’m a consumer, and generally, that’s a big part of me basing my decisions on whether to go in and buy a company’s stock. That having been said, I’ve been using Wish for many, many years for buying things, and it is an excellent platform. It connects buyers in the West predominantly with sellers in the East. Of course, this is not a new concept. There are different platforms like Ali Baba and Ali Baba Express or AliExpress, and both of them offer significantly the same basket of products. It’s essentially connecting buyers with cheap products in the East. One of the concerns that I have around Wish in context to my personal dealings with the company is that I’ve felt that they are very tech-driven. There is very little human intervention in the company. Whenever I’ve had personal issues on the platform, it’s taken a long time to really resolve those issues. I find that Wish is not the best service around, but where they are absolutely superior to everybody else, they’ve made the process simple. Their pricing is really, really competitive. Most people refer to Wish as the Dollar Store online. That having been said, we are in a price end sort of market, and so this is no question why they have got a significant market share. They have a hundred million active online shoppers spread over 90 countries from all accounts, which is just absolutely phenomenal.
(05:26): Now, my personal recommendation for Wish; if you can get in early today on IPO day and secure yourself some shares in the initial retail release, which is basically the secondary market, and you can get in there for under 35 dollars a share, I absolutely would recommend you go and grab some of those. My second recommendation would be if the stock nears anything over 70 dollars a share on the first days close, my advice would be to sell out. I don’t often recommend day trading, but this is a fantastic opportunity to get in low and sell high. Now, that being said, would I hold the share long term? Am I going to hold the share long term? I don’t believe in the business model, I don’t believe it has legs to go in the future, and I think it will ultimately be challenged and replaced by something else. Today, the price cannot be the only thing that attracts consumers to you. It’s been shown time and time again. There has to be additional value in a company other than their pricing. For me, Wish comes up short in terms of its business model, it comes up short in terms of its future-proofing and future planning, and so I personally wouldn’t be holding onto the stock long term. That having been said, I will be sitting on the fringes today. If I can grab myself some shares in the early release below 35 dollars a share, I’m going to grab as many shares as I can, and then most certainly before those shares close out and start coming down in price, which they absolutely will, I will be looking to sell. That’s my profit play for today, Wednesday 16 December, and I really hope this helps you make some money today. If you enjoyed this video, please make sure to click the like button and leave me a comment and let me know if you’re going to be buying Wish shares today. If you have not already done so, please subscribe to our channel and be sure to click on the bell notification and turn on notifications for our channel so you can get notified whenever we add new content.