Technology Companies Such as Wish and Robinhood Losing Heavily in Stock Values
In recent years, the entire world has witnessed a technology boom that has pushed the technology companies ahead of other industries that once had the lead. The technology sector has observed a tremendous amount of adoption and people from around the world are heavily invested in the particular industry.
However, the worldwide adoption of technology does not mean that every technology company would thrive in the system. There are companies that are performing better than ever, and then there are those, who are not.
Today, we will discuss technology companies that had the potential to grow big but haven’t been able to do it. Instead, these companies have experienced huge losses to their valuations due to losses in stock prices.
Wish Stocks Plummeted 16% in the Past Week
Ever since launching itself in the public market back in December 2020, Wish has struggled to maintain the presence of its stocks. Although the company did make some progress at the time of its public listing, it has only observed a dip in the share prices after that.
At the time of initial public offering, the stocks for Wish traded at $24 per share. Over time, the stock prices for Wish escalated to $32.85 per share. The biggest shock for the investors is that Wish’s stocks are now trading at a low price of $1.99 per share.
This is the worst plummet any technology-based company would have faced in a 52-week period. As of now, the stock price for Wish is over 90% lower than the 52-week high share price.
Wish is a commerce application that is used through smartphones. The major reason behind the application losing its value in the stock market is the growing lack of interest among the users. The data shows that the users have been abandoning the application in masses, which means that it no longer has the charm it used to have.
Due to the constant abandonment of the users, the application has been losing its value, and only in the past week, Wish lost 16% of its stock value.
Robinhood Stocks Also Facing Huge Losses
Robinhood is also facing huge losses ever since its public appearance in July of 2021. The app-based trading application gained a tremendous amount of popularity when it introduced cryptocurrencies on its platform. The platform was joined by millions of crypto enthusiasts who invested huge stacks of money through Robinhood, making it a huge success.
Unfortunately, the cryptocurrency that made Robinhood a success was Dogecoin, and as Dogecoin lost its steam, Robinhood ended up facing losses as well. Even the public launch wasn’t received as well as the Robinhood executives had expected it to be.
The share prices for Robinhood started dipping in the last quarter of 2021. However, earlier this year, Robinhood launched its options trading feature, which helped boost Robinhood’s stock prices by 50%. Unfortunately, the share prices for Robinhood by 28% the next day. As of now, Robinhood has lost 87% of its value from all all-time highs, and 70% value from the time of its IPO.