Shares of ContextLogic Inc (NASDAQ: WISH) went up as much as 40% today after the eCommerce company announced a share repurchase programme.
How many shares will it buy back?
On Friday, the Nasdaq-listed firm confirmed that it plans on buying back up to $50 million worth of its stock.
The programme that will be effective through December 31st, 2023 does not obligate ContextLogic to repurchase any particular number of shares. In the press release, CFO Vivian Liu said:
This share repurchase programme demonstrates the Board’s and management’s confidence in the future of our business and our commitment to creating long-term, sustainable value for our shareholders.
Versus its year-to-date high, ContextLogic stock is still down about 65%.
ContextLogic to report earnings next month
ContextLogic is scheduled to report its Q3 results in the first week of next month. Consensus is for it to lose $3.92 a share this quarter versus $1.8 per share a year ago.
The stock market news arrives only weeks after the California-based company executed a 1-for-30 reverse split. CFO Liu also wrote today:
We believe the current market doesn’t reflect the long-term value of our shares and this share repurchase programme will support our efforts to unlock the long-term value and opportunity we see ahead.
Last month, “WISH” teamed up with ShipSage to enable faster order fulfilment for U.S. merchants. Nonetheless, Wall Street currently has a consensus “underweight” rating on ContextLogic stock.
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