Wish parent ContextLogic plunges 20% after missing quarterly sales forecasts and getting a double-downgrade from JPMorgan

• ContextLogic shares sank 20% on Friday after second-quarter financial results fell short of expectations.
• The Wish e-commerce platform operator's revenue of $656 million was below the $723 million expected by analysts.
• JPMorgan gave the stock a rare double-downgrade, cut its rating to underweight from overweight.

Wish.com parent ContextLogic tumbled 20% on Friday after turning in second-quarter sales and a per-share loss that missed expectations, prompting a double-downgrade from JPMorgan.

ContextLogic late Thursday said sales were $656 million for the three months ending June 30, a result that was lower than $723 million expected by analysts polled at FactSet. It lost $0.18 a share and analysts had projected a loss of $0.13 a share.

The shares closed Friday's session down 20% at $7.55 after dropping by as much as 29%. So far this year, the stock has lost 59%.

"Wish has begun executing on initiatives designed to enhance the user experience and increase engagement on the Wish app following second-quarter results that did not meet our expectations," said Piotr Szulczewski, Wish's founder and CEO, in a statement.

The company said it expects its marketplace revenue to decline further in the second half of 2021 with a reduction of digital advertising expenditures.

JPMorgan on Friday issued a double-downgrade on the company's rating, to underweight from overweight, and yanked its price target down to $5 from $17.

"WISH's 2Q results & 3Q outlook suggest more significant damage to the business model, and the new product strategy could take many quarters to materialize and carries considerable execution risk," said analyst Doug Anmuth.