ContextLogic stock tumbles toward a record low after Oppenheimer analyst turns bearish

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Shares of ContextLogic Inc. WISH, +2.41% tumbled 8.3% toward a record low in afternoon trading Monday, after Oppenheimer analyst Jason Helfstein said it's time to sell, saying the parent of mobile-focused e-commerce platform Wish is facing a "perfect storm of negative challenges" in the coming months. The stock, which went public in December, is now trading 79.5% below its $24 IPO price. Helstein cut his rating to underperform from perform, as his $4 stock price target is 18.5% below current levels. "China accounted for substantially all marketplace/logistics in FY20, exposing Wish to a 393% increase in shipping costs," Helfstein wrote in a note to clients. "Further, with ad budgets shifting to Android, digital ad costs have remained elevated throughout 3Q, impacting customer acquisition/retention." The stock has plunged 57.9% over the past three months, while the Renaissance IPO ETF IPO, -0.02% has slipped 4.5% and the S&P; 500 SPX, -0.72% has eased 1.4%.