WeShop (WSHP) stock dove on Thursday as the e-commerce company’s shares retreated from a massive rally this week. That rally came alongside the company’s direct listing on the Nasdaq Capital Market. Its U.S. debut sparked investor interest and has resulted in large rallies for the stock since shares started trading on Monday.
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The big news today includes the launch of its e-commerce shopping app. This launch allows users to make use of the company’s service ahead of the U.S. holiday shopping period. That’s important as WeShop has partnerships with several major retailers, including Bloomingdale’s, Walmart (WMT), and Nike (NKE). It offers more than 1 billion products and also includes user benefits, such as its ShareBack loyalty program.
John Garner, Founder of WeShop, said, “With this launch, we’re giving U.S. consumers a completely new type of shopping experience, one where the community is rewarded for the value it creates. Peer-to-peer recommendations consistently outperform traditional advertising, and with WeShop, shoppers can finally share in the upside of the network they power. This is the Retail Revolution: social, community-driven, and built on real ownership.”
WeShop Stock Movement Today
WeShop stock was down 32.5% in pre-market trading on Thursday, following a 506.6% rally yesterday. The stock has experienced heavy trading since its debut, with some 267,000 shares traded yesterday. Today’s trading volume is much more muted than that, with only about 5,000 units exchanged as of this writing.
Is WeShop Stock a Buy, Sell, or Hold?
Considering WeShop only made its public debut in the U.S. earlier this week, there’s no significant analyst coverage for traders to turn to. The same is also true for Spark, TipRanks’ AI analyst, as it has yet to weigh in on the e-commerce company.
All of this is to say that investors should be careful about taking a stake in WeShop right now. The company’s direct listing could be seen as a red flag alongside its recent volatility.