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Summary
- WeCommerce stocks yielded a double-digit return on December 16. Its current market cap is closer to C$ 1 billion mark.
- WeCommerce stocks have added almost 105 per cent growth since Monday.
- Stocks of e-commerce platform Wish trading on the Nasdaq on December 16 and dropped nearly 16.5 per cent on debut day.
- Wishpond Technologies Ltd. (TSXV:WISH) stocks returned nearly 39 per cent since its recent listing, led by an accelerated rally in e-commerce.
Online retail sales in Canada shot up 68 per cent year-over-year (YoY) to C$ 36.2 billion between March to September 2020, says a Statistics Canada report. E-commerce sales have rocketed almost 74.3 per cent YoY in September and the surge has continued due to the ongoing festive season.
The recent survey led by Canada Post shows that approximately 80 per cent of Canadians shopped through online websites or e-commerce apps in the last year, and 48 per cent expect to purchase more through online platforms this holiday season.
To better understand this rally, let us look at the following WeCommerce, WISH and Wishpond Technologies.
WeCommerce Holdings Ltd. (TSXV:WE)
Current Stock Price: C$ 27.69
WeCommerce Holdings began trading on the Toronto Stock Exchange Venture (TSXV) this week, under the ticker symbol ‘WE’. On the listing day, the stock gained a massive 110.71 per cent surge. WeCommerce CEO Chris Sparling said that the firm would continue to work as an acquirer for the Shopify partner network.
The firm focuses on developing and acquiring companies that work for the Shopify Partner network. These companies mainly offer Software as a Service (SaaS), digital products, and services enterprises and build apps, themes and management agencies that support Shopify merchants. Wecommerce is one of Shopify’s initial partners, working with the ecommerce giant since 2010.
The stock trading volume touched 1.43 million units on its first day of trading. The stock also yielded a double-digit return on December 16. Its present market cap stands at C$ 995 million. It has nearly 35 million outstanding listed shares, as per the TMX data.
Wishpond Technologies Ltd. (TSXV:WISH)
Current Stock Price: C$ 1.39
Wishpond Tech, a SaaS-focused online solutions provider, started trading on the TSXV under the ticker name "WISH" on December 12. The company stocks have delivered nearly 39 per cent gains since its listing, guided by an accelerated rally in e-commerce. It has a current market cap of C$ 64 million, as per data on the TMX portal.
The SaaS-based company reported a revenue of nearly C$ 2.1 million in the third quarter of 2020, a rise of 38 per cent year-over-year, led by higher sales results. Its gross profit was approximately C$ 1.52 million, a 41 per cent surge compared to the third quarter of 2019, guided by overall revenue growth. The company is expecting strong and steady growth for the current fiscal year.
ContextLogic Inc. (NASDAQ: WISH, WISH: US)
Current Stock Price: US$ 21.44
US-based Wish is an e-commerce platform that enables transactions between merchants and buyers. Stocks of Wish parent ContextLogic commenced trading on the Nasdaq on December 16 and dropped nearly 16.5 per cent to close at US$ 20.05 per stock.
ContextLogic, in its exchange filing, stated that it is planning to raise about US$ 1.1 billion from this initial public offering (IPO). This creates a company valuation of approximately US$ 14.07 billion. But the company is still trading below its opening stock price i.e., US$ 24 per unit.
