Wish IPO, Should You Invest in Wish?
A Wish IPO is one of the most likely tech stocks to be listed in the next year. Given that Wish has an increased consumer base due to an increase in online shopping in recent weeks because of the coronavirus, it is possible that this tech company will be listing soon. So, it causes one to wonder would a Wish IPO really be worth investing in?
What is Wish?
Which is an E-Commerce site that is dedicated to listing products through images rather than a search bar. Its tagline is to make shopping fun, this shows through in how different the website is from services like eBay an Amazon. Another interesting thing about Wish is that the majority of goods sold on it are sold at a significantly reduced price. The ability to ship these cheaper due to an agreement between China post and USPS lowers the cost of goods that are less than two kilograms so Wish is able to ship these cheap items from China that are smaller than two kilograms to the United States. Often times however Wish lists items that are knockoffs, broken, or just plain awful. Despite this, the majority of people who shop on Wish tend to like the excitement that comes from not knowing exactly what they’re getting.
Wish IPO Could Compete with Large Online Retailers
Wish as an online retailer will obviously need to compete with larger sites such as Amazon and eBay. Amazon and eBay both have the difference of offering exactly what people want, whereas Wish offers a fun alternative which allows users to see things that they didn’t know they wanted yet. It is an impulse shopper’s paradise, and that is why it stands out from large online retailers. It will never replace them, but in a market that is oversaturated by E-Commerce websites where every brand has a million sales going on at once on 30 different websites in 20 different countries it is difficult to stand out. Wish has done a good job of setting itself apart from the crowd, and that is one of the most important things in this industry.
Can Wish Even Compete?
Just as I previously mentioned, Wish can compete not because they are offering a product or service that other online retailers cannot, but because they’re offering some new and completely different way of buying things. It is the exact same method of buying as before. You find an item, you click that item, you add it to your cart, you checkout, and 6 to 8 days later you get a product in the mail. The only thing that sets Wish apart, and the only thing that has to in a world filled with outlets and express shopping, is that it offers customers a way of buying discounted goods completely legally, just at a risk that your purchase may not be exactly what you want. It gives people the opportunity to splurge without having to spend a ton of money. There are videos all over the Internet of people getting dozens of articles of clothing for $50 to $100. Wish can compete simply due to its low pricing and ability to suck people in.
Should You Buy Wish Stock If There is an IPO?
Wish is a stock that it’s difficult to judge what should happen to its earnings in the near future. In a time of economic recession, one must wonder how much splurge shopping people are doing. Given that Wish has only existed since 2010, it’s hard to know how this company might react in a down market. If the Wish IPO is in the near future, within the next 6 to 9 months, this author would suggest not purchasing the stock, however, if the stock lists in mid to late 2021 then it might be a buy. We’ll simply have to see how the market stabilizes.
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