$WISH fires its CEO as core revenue plummets 55% and company burns 25% of its remaining cash balance…

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by randombetch

Link to the PR: www.businesswire.com/news/home/20211110006210/en/Wish-Reports-Third-Quarter-2021-Financial-Results-and-Provides-Business-Update

  1. Company fires its CEO without a named successor
  2. Core marketplace revenue down 55%
  3. Q4 revenue expected to be even worse than Q3 despite the holidays… unheard of. The company had already completely shut off marketing in Q3, so this means customers are ditching Wish left and right
  4. Most importantly, Free Cash Flow was -$344M this quarter. The company is burning roughly $300M/quarter this year (despite shutting off sales and marketing) and has $1.1B left… At this rate, the company will be insolvent by next summer.
See also  WEIRD, AND AFTER THEY GOT WOKE, TOO: Google cuts 12,000 jobs, the largest layoff in the company’s history.

I’m not saying short the stock, but if you think the stock has “bottomed”, I think there’s a good chance the bottom is at $0/share and it’ll get there as soon as next summer.

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.

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