ContextLogic (LOGC) AI Stock Analysis

• Market Cap: $179.79M
• Dividend Yield: N/A
• Average Volume (3M): 352.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -73.24%
• EPS Growth: 62.32%
• Country: US
• Employees: 452
• Sector: Consumer Cyclical
• Sector Strength: 49
• Industry: Retail - Discretionary
• EPS (TTM): -5.79
• Shares Outstanding: 26,285,055
• 10 Day Avg. Volume: 561,844
• 30 Day Avg. Volume: 352,133
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.87
• Price to Cash Flow (P/CF): -22.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall score reflects significant financial challenges, including declining revenues and negative cash flows, which are partially offset by strategic initiatives and a strong equity base with no debt. Technical indicators suggest a neutral position, while valuation concerns persist due to ongoing losses. Recent corporate events hint at potential strategic improvements, but their long-term impact is yet to be seen.

ContextLogic Business Overview & Revenue Model

Company Description

ContextLogic Inc is an online shopping store. The store provides personalized products, clothing products, accessories, gaming products and equipment, cosmetics, plastic products, mobile covers, and other products.

How the Company Makes Money

ContextLogic makes money through a combination of commission-based fees on transactions, advertising, and logistics services. The company charges merchants a commission on each sale made through the Wish platform, which varies based on product categories and promotional activities. Additionally, ContextLogic offers advertising services that allow merchants to boost their product visibility on the platform through sponsored listings and other marketing tools. The company also generates revenue by providing logistics and fulfillment services, helping merchants with warehousing, shipping, and delivery to optimize customer satisfaction and reduce logistical challenges.

ContextLogic Financial Statement Overview

Summary

ContextLogic is experiencing severe financial challenges, with significant declines in revenue and profitability, alongside negative cash flows. Despite having no debt and a strong equity base, the company's financial position is precarious due to ongoing losses and cash burn.

Income Statement

The company has experienced a significant decline in revenue, from $2.54 billion in 2020 to $96 million in TTM (Trailing-Twelve-Months). Gross profit margins have also decreased substantially, indicating reduced profitability. Net profit margins are negative, reflecting ongoing losses. Revenue growth has been negative over the past years, showing a concerning downward trend. EBIT and EBITDA margins are also negative, further highlighting operational challenges.

Balance Sheet

The balance sheet shows a strong equity base with a high equity ratio of 96.84% in TTM (Trailing-Twelve-Months), indicating financial stability. The company has no debt, reducing financial risk. However, the declining total assets and stockholders’ equity over recent years are concerning. Return on Equity (ROE) is negative due to losses, which is a major weakness.

Cash Flow

Operating cash flow and free cash flow are significantly negative, indicating cash burn and poor cash generation. Free cash flow to net income ratio is negative, showing inefficiency in converting income to cash. The company has struggled with consistent negative cash flows over the years, raising liquidity concerns.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
96.00M	287.00M	571.00M	2.08B	2.54B	0.00
	Gross Profit
16.00M	59.00M	166.00M	1.11B	1.59B	0.00
	EBIT
-147.00M	-328.00M	-398.00M	-367.00M	-631.00M	-41.04M
	EBITDA
-149.00M	-324.00M	-392.00M	-358.00M	-619.00M	-134.00M
	Net Income Common Stockholders
-141.00M	-317.00M	-384.00M	-361.00M	-745.00M	-40.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
80.91M	382.00M	719.00M	1.16B	2.13B	50.65M
	Total Assets
82.91M	423.00M	799.00M	1.28B	2.40B	55.66M
	Total Debt
0.00	6.00M	13.00M	16.00M	38.00M	10.31M
	Net Debt
-80.91M	-232.00M	-493.00M	-993.00M	-1.93B	-22.79M
	Total Liabilities
2.69M	206.00M	322.00M	465.00M	1.37B	13.37M
	Stockholders Equity
80.22M	217.00M	477.00M	818.00M	1.03B	42.29M
Cash Flow		Free Cash Flow
-167.00M	-344.00M	-424.00M	-953.00M	-30.93M	-40.16M
	Operating Cash Flow
-167.00M	-341.00M	-422.00M	-951.00M	-28.93M	-38.75M
	Investing Cash Flow
-104.00M	74.00M	-47.00M	-3.00M	165.00M	-18.50M
	Financing Cash Flow
-1.00M	-5.00M	-22.00M	7.00M	1.05B	10.07M

ContextLogic Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOGC, the sentiment is Negative. The current price of 6.84 is below the 20-day moving average (MA) of 7.82, below the 50-day MA of 7.44, and above the 200-day MA of 6.33, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 7.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOGC.

ContextLogic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	76 Outperform	$21.53B	11.74	47.49%	―	19.35%	―
AMZN	73 Outperform	$2.08T	35.60	24.29%	―	10.99%	91.61%
EBAY	73 Outperform	$30.39B	17.30	34.29%	1.58%	2.79%	-23.30%
ETSY	63 Neutral	$5.02B	19.76	-39.97%	―	2.18%	5.77%
Sector *	60 Neutral	$12.39B	10.47	1.07%	3.58%	1.64%	-18.33%
W	46 Neutral	$4.32B	―	17.86%	―	-1.27%	38.07%
LOGC	45 Neutral	$179.79M	―	-66.35%	―	-73.24%	62.32%

ContextLogic Corporate Events

ContextLogic Announces Strategic Growth Amid Leadership Changes

ContextLogic Inc., following the sale of most of its assets in April 2024, reported a reduced net loss of $1 million in Q3 2024 compared to $80 million the previous year. The company focuses on strategic growth, aiming to acquire or build new operations while maintaining a streamlined administrative structure. With significant cash reserves and marketable securities, ContextLogic is poised to leverage its financial position for shareholder value. CEO Rishi Bajaj expressed optimism about ongoing strategic evaluations, hinting at updates in future quarters.