ContextLogic stock drops on double downgrade from Loop Capital
Loop Capital downgraded ContextLogic (NASDAQ:WISH) -7% to 'Sell' from 'Hold', and lowered its PT to $6 from $7.
Brokerage's PT represents a discount of 17% to ContextLogic's last close. Its shares fell -7.6%. 
Loop noted that the e-commerce firm has consistently missed Wall Street estimates for revenue, and does not expect the firm to perform differently this quarter.
Brokerage lowered its revenue outlook for the second-quarter by $4 million, and cut its FY revenue outlook to $406 million from $436 million.
Loop said the San-Francisco based company will have a hard time protecting its market share from larger rivals like PDD (PDD) owned e-commerce platform Temu, who are spending much more aggressively on marketing. 
"...The lack of clarity on business model keys such as supply and pricing makes an investment in WISH stock a non-starter in our view," said Loop Capital. It noted that ContextLogic does not disclose GMS in its earnings reports, making it difficult to understand marketplace performance.