Every week, Benzinga conducts a survey to collect sentiment on what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.
We posed the following question to more than 1,000 traders and investors regarding Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Ltd - ADR (NYSE:BABA) and ContextLogic Inc (NASDAQ:WISH):
Over the next year, should Amazon or Alibaba try to buy ContextLogic?
- Amazon should buy ContextLogic: 43%
- Alibaba should buy ContextLogic: 15%
- Neither should buy ContextLogic: 42%
With ContextLogic shares down some 84% over the past year, long investors who own the e-commerce player in 2022 may be hoping for a buyout.
BusinessInsider published a rumor back in fall 2015 that Amazon had offered to buy ContextLogic for some $10 billion dollars. ContextLogic was then a five-year-old firm, and according to reports then-CEO and cofounder Pitor (Peter) Szulczewski supposedly had no interest in selling for the $10 billion price tag.
ContextLogic did an IPO and opened for trade on Dec. 20, 2020, at $22.75 a share. The IPO raised around $1 billion for the company and valued the firm at around $14 billion. Now, with the stock trading at $1.66 at the time of publication Tuesday afternoon and at a $1.11 billion market cap, it wouldn’t be the most far-fetched idea that a dominant player in the e-commerce space could make a bid for ContextLogic.
Amid the stock falling sharply over the past year, ContextLogic announced during its third-quarter earnings release back in November 2021 that Szulczewski was stepping down from the CEO role. Szulczewski will continue to serve as a member of the board.
See Also: Can A New CEO Help Turn Around ContextLogic?
So what did our survey reveal? Between Amazon and Alibaba, investors who participated in our survey see Amazon as the most likely to purchase ContextLogic.
Forty-three percent of respondents said Amazon should attempt to acquire ContextLogic over the next year. Potentially due to regulatory issues surrounding Chinese tech stocks, only 15% said Alibaba should buy ContextLogic. Forty-two percent believe neither firm should attempt to acquire ContextLogic over the next year.
This survey was originally conducted by Benzinga in February 2022 and included the responses of a diverse population of adults 18 or older.
Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from more than 1,000 adults.
