ContextLogic Holdings (LOGCD) AI Stock Analysis

• Market Cap: $212.32M
• Dividend Yield: N/A
• Average Volume (3M): 239.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• 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: 26,876,099
• 10 Day Avg. Volume: 152,221
• 30 Day Avg. Volume: 239,194
• 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: 0.52
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -6.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $8.00 ▲(1.78% Upside)

The score is held back primarily by very weak financial performance (revenue collapse, ongoing losses, and negative cash flow), only partially offset by a low-debt balance sheet. Technicals are mildly supportive with price above key moving averages and positive MACD. Corporate actions (US Salt acquisition and rights offering) provide a potential strategic pivot but introduce dilution and execution risk, while valuation remains challenged due to losses (negative P/E) and no dividend support.

Positive Factors

Low leverage and positive equity

A very low-leverage balance sheet with positive equity materially reduces near-term solvency risk and gives management optionality for strategic actions. Over 2-6 months this supports financing M&A or bridging operations without immediate refinancing pressure, improving resilience during the business pivot.

Acquisition of US Salt into resilient end markets

Acquiring a vertically integrated producer serving stable, essential markets shifts ContextLogic toward predictable demand and higher structural margin visibility. High barriers to entry and steady end-market consumption can produce durable cash flows and stabilize the company’s revenue base after years of marketplace decline.

Significant net operating loss (NOL) tax assets

Large NOLs provide meaningful tax shields that can preserve cash when the company or US Salt generates taxable income. Over the medium term this enhances free cash flow conversion and supports reinvestment or debt paydown, improving the economics of an acquisition-driven holding strategy.

Negative Factors

Revenue collapsed to $0 in TTM

The absence of recurring revenue erodes visibility into core operating performance and margin sustainability. Without an existing revenue base, the company must rely on acquisitions or external financing to generate cash, increasing execution risk and making near-term recovery contingent on successful integration and new business performance.

Persistent negative operating and free cash flow

Ongoing cash burn, even if reduced, forces dependence on external capital and constrains organic reinvestment. Over several months this pressure can limit supplier and operational flexibility, making the company more sensitive to financing terms and reducing the buffer for integration or turnaround execution.

Large acquisition financing and execution risk

The $907.5M deal’s complex funding—debt, cash, and a rights offering—raises leverage and dilution risks while placing heavy execution demands on a tiny operating team. Successful integration of a century-old manufacturing business and disciplined capital allocation are required to realize durable value; failure would strain balance sheet and cash flow.

ContextLogic Holdings 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 Holdings Financial Statement Overview

Summary

Overall financial quality is very weak: revenue has collapsed (down to $43M in 2024 and $0 in TTM) with persistent losses and continued negative operating/free cash flow (about -$16M in TTM). The main offset is a low-debt balance sheet with positive equity, which reduces near-term solvency risk but does not resolve ongoing value erosion.

Income Statement

The operating picture remains very weak. Revenue has collapsed over the past several years (from $2.54B in 2020 to $43M in 2024, and $0 in TTM (Trailing-Twelve-Months)), while profitability is consistently negative with large operating losses each year. Gross margin also compressed materially versus earlier periods, and despite smaller absolute losses in TTM (Trailing-Twelve-Months) versus 2024, the lack of revenue limits visibility into any sustainable turnaround.

Balance Sheet

The balance sheet is a relative bright spot due to very low leverage. Total debt is effectively $0 in 2024 and TTM (Trailing-Twelve-Months), and equity remains positive (~$141M in TTM (Trailing-Twelve-Months)). However, equity has trended down sharply from 2020 levels and returns on equity are consistently negative, indicating ongoing value erosion even with limited debt risk.

Cash Flow

Cash generation is pressured, with operating cash flow and free cash flow deeply negative across the history and still negative in TTM (Trailing-Twelve-Months) (about -$16M). While cash burn has improved meaningfully versus 2024 and prior years, free cash flow growth is negative in TTM (Trailing-Twelve-Months) and cash flows remain structurally reliant on cost reduction rather than business-driven inflows.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

ContextLogic Holdings 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 LOGCD, the sentiment is Positive. The current price of 7.86 is above the 20-day moving average (MA) of 7.76, above the 50-day MA of 7.66, and above the 200-day MA of 7.54, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 63.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOGCD.

ContextLogic Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RERE	71 Outperform	$1.26B	35.46	7.42%	―	27.84%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
W	58 Neutral	$14.31B	-42.90	―	―	3.35%	42.99%
TDUP	54 Neutral	$649.49M	-16.67	-35.37%	―	-4.90%	50.77%
LOGCD	50 Neutral	$212.32M	-13.04	―	―	-100.00%	93.34%
BZUN	45 Neutral	$172.04M	-5.72	-5.26%	―	6.20%	9.12%
JMIA	45 Neutral	$1.58B	―	-102.27%	―	-4.62%	―

ContextLogic Holdings Corporate Events

ContextLogic Names Interim CFO and Launches Major Rights Offering

On January 22, 2026, ContextLogic appointed veteran finance executive Chad Chevalier as interim chief financial officer, effective January 16, 2026, adding more than 25 years of accounting, advisory and corporate finance experience from roles at EY, Mead Johnson Nutrition, Sara Lee, ACCO Brands and KPMG to its senior leadership as the company navigates a major strategic transition. On the same date, the company launched a fully backstopped $115 million rights offering to existing shareholders at $8.00 per share, representing up to 14,375,000 new shares, to help fund and complete its previously announced $907.5 million acquisition of US Salt; if fully subscribed, the offer would leave ContextLogic owning 67.8% of ContextLogic Holdings, LLC and issuing shares equal to roughly 20.9% of its post-transaction share capital, while maintaining protection of its sizable net operating loss carryforwards via a 4.9% ownership cap and providing retail investors the chance to participate alongside institutional backers Abrams Capital and BC Partners Credit ahead of an expected late-February 2026 closing.

The most recent analyst rating on (LOGC) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on ContextLogic stock, see the LOGC Stock Forecast page.

ContextLogic to Acquire US Salt, Launch Holding Platform

ContextLogic announced that it has entered into a purchase agreement to acquire US Salt, a vertically integrated U.S. producer of high‑purity evaporated salt serving resilient end markets such as food, pharmaceuticals and water conditioning, and that it will fund the transaction in part through a $115 million pro rata rights offering to holders of its common stock. In connection with this planned US Salt acquisition, the company is voluntarily releasing extensive supplemental business, management, financial and pro forma information on US Salt and the combined operations, underscoring its strategy to make US Salt the anchor subsidiary in a new long-term, acquisition-driven holding platform with a governance and incentive structure designed to align managers and major shareholders around durable profit growth and disciplined capital allocation.

The most recent analyst rating on (LOGC) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on ContextLogic stock, see the LOGC Stock Forecast page.

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.