ContextLogic (LOGC) AI Stock Analysis

• Market Cap: $182.88M
• Dividend Yield: N/A
• Average Volume (3M): 391.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -84.75%
• EPS Growth: 77.25%
• Country: US
• Employees: 8
• Sector: Consumer Cyclical
• Sector Strength: 50
• Industry: Specialty Retail
• EPS (TTM): -3.04
• Shares Outstanding: 26,313,620
• 10 Day Avg. Volume: 268,897
• 30 Day Avg. Volume: 391,145
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.60
• Price to Cash Flow (P/CF): -24.70
• 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

ContextLogic's overall stock score reflects its substantial financial challenges, including declining revenues and persistent losses, offset by positive corporate events involving significant investments that enhance liquidity. The technical indicators suggest a neutral trend, while valuation remains difficult due to negative earnings. The company's strategic investments provide potential for future growth, but the financial and operational hurdles remain significant.

ContextLogic Business Overview & Revenue Model

Company Description

ContextLogic Inc. (NASDAQ: LOGC), commonly known as Wish, is a global e-commerce platform that connects millions of consumers to a wide array of affordable and diverse products. The company operates primarily within the e-commerce sector, offering a digital marketplace that allows sellers to reach a vast audience of budget-conscious shoppers. Wish is known for its mobile-first approach, utilizing technology and data science to enhance the shopping experience and optimize product discovery.

How the Company Makes Money

ContextLogic generates revenue through its e-commerce platform by charging merchants a commission on sales made through its marketplace. The company also earns money by offering advertising services to sellers, enabling them to promote their products within the platform to increase visibility and sales. Additionally, Wish monetizes through logistics services, providing various shipping options to merchants to facilitate product delivery to consumers. Key partnerships with logistics providers and a focus on direct-from-manufacturer sales contribute to maintaining competitive pricing and enhancing the overall customer experience.

ContextLogic Financial Statement Overview

Summary

ContextLogic faces substantial financial challenges, characterized by declining revenues, persistent losses, and negative cash flows. While the debt-free balance sheet offers some balance, the continued erosion of equity and asset bases alongside ongoing operational inefficiencies highlight the need for strategic reassessment to restore financial health and stability.

Income Statement

The company has experienced a significant decline in revenue over the years, with a revenue drop from $2.541 billion in 2020 to $43 million in 2024. Gross profit margin has also plummeted, indicating challenges in maintaining profitability. The persistent negative net income and EBIT margins further highlight the ongoing struggles in achieving operational efficiency and profitability.

Balance Sheet

The company maintains a strong equity position with a debt-free balance sheet in 2024, reflected by a high equity ratio. However, the significant reduction in stockholders' equity over the years suggests financial erosion. The absence of debt provides some stability, but the declining asset base and equity levels indicate potential long-term challenges.

Cash Flow

Operating and free cash flows remain negative, indicating ongoing cash outflows, with a notable deterioration over recent years. While the company has managed to reduce net debt, the inability to generate positive cash from operations poses a significant risk to financial sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
43.00M	287.00M	571.00M	2.08B	2.54B
	Gross Profit
7.00M	59.00M	166.00M	1.11B	1.59B
	EBIT
-79.00M	-328.00M	-398.00M	-367.00M	-631.00M
	EBITDA
-78.00M	-324.00M	-392.00M	-358.00M	-619.00M
	Net Income Common Stockholders
-75.00M	-317.00M	-384.00M	-361.00M	-745.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
149.00M	382.00M	719.00M	1.16B	2.13B
	Total Assets
156.00M	423.00M	799.00M	1.28B	2.40B
	Total Debt
0.00	6.00M	13.00M	16.00M	38.00M
	Net Debt
-66.00M	-232.00M	-493.00M	-993.00M	-1.93B
	Total Liabilities
5.00M	206.00M	322.00M	465.00M	1.37B
	Stockholders Equity
151.00M	217.00M	477.00M	818.00M	1.03B
Cash Flow		Free Cash Flow
-94.00M	-344.00M	-424.00M	-953.00M	-30.93M
	Operating Cash Flow
-94.00M	-341.00M	-422.00M	-951.00M	-28.93M
	Investing Cash Flow
-68.00M	74.00M	-47.00M	-3.00M	165.00M
	Financing Cash Flow
-1.00M	-5.00M	-22.00M	7.00M	1.05B

ContextLogic Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.95
• 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 6.95 is below the 20-day moving average (MA) of 7.37, below the 50-day MA of 7.56, and above the 200-day MA of 6.46, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 39.43 is Neutral, neither overbought nor oversold. The STOCH value of 12.37 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	$21.34B	11.64	47.49%	―	19.35%	―
AMZN	73 Outperform	$2.04T	34.90	24.29%	―	10.99%	91.61%
EBAY	73 Outperform	$31.30B	17.04	34.29%	1.61%	2.79%	-23.30%
ETSY	63 Neutral	$5.00B	19.69	-39.97%	―	2.18%	5.77%
Sector *	59 Neutral	$12.26B	11.12	-0.55%	3.78%	1.42%	-20.63%
W	46 Neutral	$4.30B	―	17.86%	―	-1.27%	38.07%
LOGC	42 Neutral	$182.88M	―	-40.76%	―	-84.75%	77.25%

ContextLogic Corporate Events

ContextLogic Enhances Liquidity with $75 Million Investment

On March 12, 2025, ContextLogic Inc. reported its financial results for the fourth quarter and fiscal year ending December 31, 2024. The company has undergone significant changes, including the sale of the Wish platform and streamlining operations. A notable development was the initial closing of a $75 million investment by BC Partners in a subsidiary of ContextLogic, enhancing its liquidity to approximately $225 million. This financial maneuvering aims to support the company’s strategy of maximizing value through organic growth and acquisitions. The company reported a net loss of $2 million for the fourth quarter of 2024, a significant improvement from the $68 million loss in the same quarter of the previous year. ContextLogic continues to focus on strategic opportunities to benefit its stakeholders.

ContextLogic Amends Investment Agreement and Appoints New CEO

On March 6, 2025, ContextLogic Inc. amended and restated its investment agreement with ContextLogic Holdings, LLC, and BCP Special Opportunities Fund III Originations LP, allowing for the issuance and sale of up to 150,000 Class A convertible preferred units for $150 million. The initial closing saw 75,000 units sold for $75 million, with proceeds intended for future acquisitions. Ted Goldthorpe and Mark Ward were appointed as directors, and Rishi Bajaj was confirmed as CEO with a new employment agreement.

ContextLogic Secures $150 Million Investment from BC Partners

On February 24, 2025, ContextLogic Inc. entered into an investment agreement with BC Partners for up to $150 million in convertible preferred units. This strategic investment aims to provide ContextLogic with up to $300 million in cash to pursue acquisition-led value maximization strategies. Ted Goldthorpe from BC Partners is expected to become Chairman of the Board, and the investment positions ContextLogic to capitalize on strategic opportunities with the support of BC Partners’ expertise and resources.