How to buy ContextLogic shares

ContextLogic is an e-commerce company that operates the popular Wish platform. In this guide find out if now is a good time to invest in the company.
By: Prash Raval
Prash Raval
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or… read more.
Updated: Nov 23, 2021

This beginners guide covers the most important aspects you need to know before investing in ContextLogic. Learn about its history, its recent stock market performance, and if now is a good time to buy its shares. 

Compare the best ContextLogic trading platforms

If you are already familiar with WISH and want to invest right now, the links below will take you to our expertly selected brokers where you can buy shares. Alternatively, keep reading to learn more about the company. 

1
Min. Deposit
$50
Promotion
User Score
10
Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Start Trading
Description:
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, ETF’s, indices and commodities. eToro users can connect with, learn from, and copy or get copied by other users. Buying stocks on eToro is free and you can invest with as little as $50.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$1
Promotion
User Score
9.3
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Start Trading
Description:
Financial company driven by technology and offering all-in-one self-directed investment platform that provides excellent user experience.
Payment Methods
Full regulations list:

How to buy ContextLogic stock, a step-by-step guide

The process of getting shares in ContextLogic isn’t massively complicated, so don’t worry even if you’re new to stock investing. These are the steps to follow in order to complete your investment:

  1. Choose a broker. You will need to use an online brokerage platform. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
  2. Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
  3. Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in ContextLogic shares.
  4. Place an order for NASDAQ: WISH stock. Search for ContextLogic’s ticker symbol (NASDAQ: WISH) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to own and place your order.
  5. Execute your order. Once you have placed your order, your broker will automatically execute it for you and your ContextLogic shares will be listed in your account. Congratulations, you’ve just bought shares in ContextLogic.

Should I invest in ContextLogic?

It could be worth adding WISH shares to your portfolio, although it has had a tough time since its IPO so it is more of a risk than other e-commerce companies like Amazon or Etsy. It is trading much lower than it was when it floated on the stock market. So if you believe it has future potential, now might be a good time to buy as it is considered a cheap stock. 

Former Google engineer, Piotr Szulczewski founded ContextLogic in 2010 with the aim of developing software. In 2011 the company created an application called WISH that allowed shoppers to create a wish-list of products that the app would match to merchants. Unlike many e-commerce sites, WISH connects merchants to sellers, cutting out many fees. 

It has grown in popularity, especially with merchants who save on distribution costs. It earns its revenue from taking a small percentage of each sale made via its app. One million sellers currently list products on its platform, while over 100 million users use its services every month.  

How has the company performed in recent years?

Not too well, especially since its IPO in late 2020. It has dropped much of its market value since then, losing over three quarters from its share price peak in January 2021. Its steady decline is connected to disappointing sales figures. When economies reopened after the pandemic and physical shopping resumed, fewer people were using the WISH platform. 

The drop in sales was felt hardest in its three main markets, the US, France, and Italy. It has  been plagued with complaints from consumers about counterfeit  and illegal products. For the most part, merchants selling via WISH are based in China. It’s been critisised for selling low quality fakes, which at times, take weeks to arrive and are difficult to return. 

WISH generates revenue from three segments; e-commerce sales, advertising, and logistics. The bulk of its money (around 80%), comes from sales made via its app, with the remaining 20% being made up by charging merchants for ads and its logistics business. Both have experienced strong growth since its IPO. 

Is it a good time to buy ContextLogic shares now?

It might be worth a small investment in the hopes things turn around and its share price goes back up. However, the reality is ContextLogic is a struggling business now, almost 80% has been wiped off its value and the road ahead could be quite bumpy with strong competition from the likes of Amazon. 

The advertising and logistics side of its business are profitable, although they make up a small fraction of its overall revenue. It has seen a drop in its monthly active users post the pandemic which has hit its bottom line hard. WISH is in the process of answering common complaints, most notably slow delivery times, 

It is incentivising Chinese based merchants to send products in bulk to the US, where they’ll be stored in local warehouses in the hope customers will get their orders faster. WISH is in a tough position although that doesn’t mean you shouldn’t invest. It’s a good idea  prior to investing to keep up to date with the latest news and analysis which you can do so on the links below. 

Buying, selling and trading ContextLogic shares for beginners

What to do before buying shares

You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment. 

With that in mind, here’s a checklist to run through before you start.

  1. Research the company. You should always examine the fundamentals of a company first. What is ContextLogic? How did the company get its start? How did it grow? Is ContextLogic’s revenue and profit growth picking up? Is the company innovating? The more you know about ContextLogic, the better positioned you’ll be to make smart investment decisions.
  2. Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
  3. Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
  4. Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
  5. Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our broker reviews can help you find the right platform for you.
  6. Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Our news section can help you keep on top of movements in the financial markets.

What is the difference between buying, selling, and trading shares?

If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade ContextLogic shares. Here’s a quick run-through of what’s involved in each.

Buying ContextLogic

This process involves finding a broker and placing an order for ContextLogic stock, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.

Selling ContextLogic

When you sell any ContextLogic shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit. 

When you sell is up to you. You might decide to hold for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that ContextLogic’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.

Trading ContextLogic

Trading is the same process, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.

You can trade ContextLogic shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.

Share dealing vs CFD trading

When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.

Here’s a quick summary of the two approaches, and the pros and cons of each.

Share dealing 

Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.

When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter term peaks and troughs.

Pros

  • Can build wealth over time to achieve financial goals
  • Don’t need to be very reactive to short-term market movements
  • Some stocks will give you an income through regular dividend payments

Cons

  • Takes a long time to realise any profits
  • Your capital is tied up in stocks and cannot be used for other investments

CFD Trading 

If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.

One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into NASDAQ: WISH shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.

When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.

Pros

  • Can generate fast profits if you read the market right 
  • Some platforms allow you to trade with leverage
  • Prevents your capital being tied up so you can take advantage of investment opportunities

Cons

  • Trading with leverage is risky and can lead to big losses
  • Doesn’t necessarily generate growth over the long term

Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our course on how to trade stocks.

How to choose a broker

With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:

  • Range of stocks available. The most important thing is that you can actually use the broker to find the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
  • Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
  • Regulation. You should only use regulated brokers. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
  • Payment methods available. You might want to fund your trading account using a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
  • Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
  • Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.

Latest ContextLogic news

ContextLogic Inc (NASDAQ: WISH) is best known for its e-commerce platform called Wish. WISH stock was among the most hyped initial public offerings in recent months given the platform’s extreme popularity among bargain seekers. But ContextLogic stock disappointed early investors. Shares of WISH were first listed at $24 in…

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Prash Raval
Financial Writer
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a… read more.