Searching app Desire falls in its inventory marketplace debut

The parent organization of Wish, a procuring app that sells low-priced apparel, toys and electronics, sputtered in its inventory marketplace debut.

Shares of ContextLogic Inc. fell 16.5% to close at $20.05 Wednesday, valuing the company at practically $14 billion. The inventory is trading on the Nasdaq Stock Current market below the symbol “WISH.”

Started a 10 years back, Would like positions alone as an cost-effective option to Amazon and other on the web merchants, targeting shoppers who make fewer than $75,000 a calendar year. Most of what it sells will come directly from Chinese retailers, who listing their items on the app. Would like said it has 100 million clients all-around the world, largely in North The united states and Europe.

Would like, like other e-commerce companies, has benefited for the duration of the pandemic as extra people remain at home and get on the net. Gross sales were being up 33% to $606 million in the June-to-September quarter. But it still missing cash, reporting a reduction of $99 million.

San Francisco-based ContextLogic elevated $1.1 billion in its first general public providing, advertising 46 million shares at $24 apiece.

It’s been a blockbuster 12 months for IPOs. A document quantity of firms have lifted $1 billion or additional this 12 months, which include food items shipping and delivery organization DoorDash and residence rental enterprise Airbnb. Compared with Would like, shares of people organizations soared in their debut.