H&S^2 but retail needs to give up first
What i like and i do not about Wish in the short-term
1. Insane volume vs market cap & free float
2. All retail has eyes on it
3. Upcoming correction in the markets?
4. 1 H&S taking place as we speak and one bigger one might take place couple of weeks from now
5. Weak hands needs to be shaken and if is there is a general market correction most of the retail on leverage will be forced to stop loss?
6. With so much publicity over the last weeks i feel confident that wish will announce better than expected user expansion on the the next quarterly results
Where is i see market cap/price targets and why
1. 2021 $55
2. 2022 $110
3. 2023 $260-$280
A vast majority of people who buy things similar to what Wish sells for many years had no presence online for 2 major reasons.
1. They did not know how to shop online (how to use their phone to do that)
2. They were afraid to do so
With covid however all these shoppers are NOW starting to explore the e-commerce and trust using their credit card online to make purchases, the reason why Wish showed poorer results in 2020 vs amazon for e.g is the fact that most customers that Wish really targets were not accustomed to use their phone and order online. This type of customers have 2 major advantages vs the one that shop on amazon,etsy or shopify.
1.They have lower income, therefore they are looking for maximum bargain prices and do not really care about shipping time
2.They are more prone to spontaneous purchases and this is what you get when you enter the Wish platform
Looking a little into the future i want to point out the following points
1. Shoppers on EU & US will definitely have lower purchasing power over the long term! why? because right now all we can see is the formation of the new global middle class that comes mainly from ASIA ( China, Vietnam maybe India etc..)
2. Through Wish's B2C model Chinese manufacturers can really control prices as well as increase their %profit margins vs traditional shops (brick & mortar) where there was an intermediate. With Wish they can promote whatever product they want at whatever price they want and at the same time collect precious data about their customers, something that could not happen that easily up to now.
3. You might tell me well the competition is very high on low price chinese products and there are companies right now that have 10times better plan execution and fundamentals vs Wish! sure that's a thing and Wish has to do many thing in order to reach the 100b+ market cap BUT what makes Wish unique is it's platform experience and it's brand name!
Let's talk again at the end of 2021 and see how this thing have played out!
1. Insane volume vs market cap & free float
2. All retail has eyes on it
3. Upcoming correction in the markets?
4. 1 H&S taking place as we speak and one bigger one might take place couple of weeks from now
5. Weak hands needs to be shaken and if is there is a general market correction most of the retail on leverage will be forced to stop loss?
6. With so much publicity over the last weeks i feel confident that wish will announce better than expected user expansion on the the next quarterly results
Where is i see market cap/price targets and why
1. 2021 $55
2. 2022 $110
3. 2023 $260-$280
A vast majority of people who buy things similar to what Wish sells for many years had no presence online for 2 major reasons.
1. They did not know how to shop online (how to use their phone to do that)
2. They were afraid to do so
With covid however all these shoppers are NOW starting to explore the e-commerce and trust using their credit card online to make purchases, the reason why Wish showed poorer results in 2020 vs amazon for e.g is the fact that most customers that Wish really targets were not accustomed to use their phone and order online. This type of customers have 2 major advantages vs the one that shop on amazon,etsy or shopify.
1.They have lower income, therefore they are looking for maximum bargain prices and do not really care about shipping time
2.They are more prone to spontaneous purchases and this is what you get when you enter the Wish platform
Looking a little into the future i want to point out the following points
1. Shoppers on EU & US will definitely have lower purchasing power over the long term! why? because right now all we can see is the formation of the new global middle class that comes mainly from ASIA ( China, Vietnam maybe India etc..)
2. Through Wish's B2C model Chinese manufacturers can really control prices as well as increase their %profit margins vs traditional shops (brick & mortar) where there was an intermediate. With Wish they can promote whatever product they want at whatever price they want and at the same time collect precious data about their customers, something that could not happen that easily up to now.
3. You might tell me well the competition is very high on low price chinese products and there are companies right now that have 10times better plan execution and fundamentals vs Wish! sure that's a thing and Wish has to do many thing in order to reach the 100b+ market cap BUT what makes Wish unique is it's platform experience and it's brand name!
Let's talk again at the end of 2021 and see how this thing have played out!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.