ContextLogic (LOGC) AI Stock Analysis

• Market Cap: $211.10M
• Dividend Yield: N/A
• Average Volume (3M): 414.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -100.00%
• EPS Growth: 93.34%
• Country: US
• Employees: 8
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 26,720,951
• 10 Day Avg. Volume: 183,661
• 30 Day Avg. Volume: 414,275
• PEG Ratio: 0.03
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 4.20
• P/FCF Ratio: -1.92
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.17
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $7.50 ▼(-4.58% Downside)

The score is held down primarily by extremely weak financial performance (collapsed revenue, persistent losses, and ongoing cash burn). Technicals are also soft with the stock below key moving averages. A modest positive comes from the US Salt acquisition and leadership change, but valuation remains difficult to support given negative earnings and no dividend data.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.

Strategic Investments

The $75 million investment enhances liquidity, supporting strategic growth initiatives and acquisitions, which can drive long-term value creation and operational expansion.

New Leadership

The appointment of a new CEO can bring fresh perspectives and strategies, potentially leading to improved governance and strategic execution, benefiting long-term business performance.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in maintaining market share and competitiveness, which can hinder long-term growth and profitability.

Negative Cash Flows

Persistent negative cash flows suggest financial instability, limiting the company's ability to invest in growth initiatives and potentially leading to liquidity issues.

Board Resignations

Resignations of key board members can disrupt strategic continuity and governance, potentially impacting the company's ability to effectively navigate future challenges.

ContextLogic Business Overview & Revenue Model

Company Description

ContextLogic Inc. operates as a mobile ecommerce company in Europe, North America, South America, and internationally. The company operates Wish, an ecommerce platform that connects consumers to merchants. It also provides marketplace and logistics services to merchants. ContextLogic Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

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, with declining revenues, persistent losses, and negative cash flows. While a debt-free balance sheet provides some stability, the erosion of equity and asset bases and ongoing operational inefficiencies are significant concerns.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	43.00M	287.00M	571.00M	2.08B	2.54B
Gross Profit	0.00	7.00M	59.00M	166.00M	1.11B	1.59B
EBITDA	-16.00M	-78.00M	-324.00M	-392.00M	-358.00M	-619.00M
Net Income	-14.00M	-75.00M	-317.00M	-384.00M	-361.00M	-745.00M
Balance Sheet
Total Assets	218.00M	156.00M	423.00M	799.00M	1.28B	2.40B
Cash, Cash Equivalents and Short-Term Investments	218.00M	149.00M	382.00M	719.00M	1.16B	2.13B
Total Debt	0.00	0.00	6.00M	13.00M	16.00M	38.00M
Total Liabilities	77.00M	5.00M	206.00M	322.00M	465.00M	1.37B
Stockholders Equity	141.00M	151.00M	217.00M	477.00M	818.00M	1.03B
Cash Flow
Free Cash Flow	-16.00M	-94.00M	-344.00M	-424.00M	-953.00M	-2.00M
Operating Cash Flow	-16.00M	-94.00M	-341.00M	-422.00M	-951.00M	0.00
Investing Cash Flow	6.00M	-68.00M	74.00M	-47.00M	-3.00M	165.00M
Financing Cash Flow	72.00M	-1.00M	-5.00M	-22.00M	7.00M	1.05B

ContextLogic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOGC, the sentiment is Positive. The current price of 7.86 is above the 20-day moving average (MA) of 7.74, above the 50-day MA of 7.60, and above the 200-day MA of 7.50, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 76.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOGC.

ContextLogic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RERE	71 Outperform	$1.29B	39.31	7.42%	―	27.84%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
W	58 Neutral	$15.11B	-44.88	―	―	3.35%	42.99%
TDUP	54 Neutral	$750.85M	-19.66	-35.37%	―	-4.90%	50.77%
LOGC	47 Neutral	$211.10M	-12.97	―	―	-100.00%	93.34%
BZUN	45 Neutral	$176.61M	-6.23	-5.26%	―	6.20%	9.12%
JMIA	45 Neutral	$1.75B	―	-102.27%	―	-4.62%	―

ContextLogic Corporate Events

ContextLogic Acquires US Salt, Enhances Asset Base

On December 8, 2025, ContextLogic Holdings Inc. entered into a Purchase Agreement to acquire US Salt and its subsidiaries. This acquisition involves a complex series of transactions including the issuance of common stock and cash payments to various stakeholders, aimed at consolidating ownership and restructuring the company’s holdings. The acquisition is expected to enhance ContextLogic’s asset base by integrating US Salt’s salt production and manufacturing business. Additionally, the company announced leadership changes with the departure of CEO Rishi Bajaj on December 7, 2025, and the appointment of Mark Ward as President. These strategic moves are part of ContextLogic’s broader efforts to strengthen its market position and operational capabilities.

ContextLogic Acquires US Salt for $907.5 Million

On December 8, 2025, ContextLogic announced its agreement to acquire US Salt, a producer of high-purity evaporated salt products, for $907.5 million. This acquisition marks a significant step in ContextLogic’s transformation into a business ownership platform, with US Salt serving essential, recession-resilient markets. Additionally, the company announced leadership changes, with Rishi Bajaj resigning as CEO and Mark Ward being appointed as President. The transaction is expected to close in the first half of 2026, with ContextLogic planning a listing on a national securities exchange post-acquisition.

ContextLogic Reports Q3 2025 Financial Results

ContextLogic Holdings Inc. reported a net loss of $1 million for the third quarter of 2025, consistent with the previous year, and held $218 million in cash, cash equivalents, and marketable securities as of September 30, 2025. The company continues to focus on organic growth and acquisitions, supported by a strong balance sheet and a strategic investment option that could provide an additional $75 million for future acquisitions.