Wish parent company ContextLogic Inc.’s
WISH,
shares plunged more than 10% in after-hours trading Thursday, after the e-commerce company’s revenue came in lower than $100 million for the first time on record. Wish reported first-quarter revenue of $96 million, down nearly 50% from $189 million a year ago, which executives blamed on pricing changes that began last year and decreased advertising spending. The company had never reported a quarter with less than $100 million in revenue since going public in 2019, and reported revenue of more than $600 million for five consecutive quarters from mid-2020 through mid-2021. Wish reported a loss of $89 million, or $3.83 a share, declining from a loss of $2.72 a share in the same quarter last year. Analysts on average expected a loss of $3.39 a share on sales of $115.8 million. Wish shares gained 7.8% to $7.63 in Thursday’s regular session, but gave back those gains and more in after-hours action, sinking lower than $6.90. The stock has declined 86.5% in the past year, as the S&P 500 index
SPX,
has declined 4.9%.
