WISH stock is quickly becoming one of the most talked-about stocks on social media. But unlike other overhyped meme stocks, this one might be worth your money…

ContextLogic Inc. (Nasdaq: WISH) is one of the latest stocks to fall into the hands of the meme crowd on WallStreetBets, the Reddit board where the newest generation of speculators are targeting companies where they think a short squeeze could drive stocks to the moon.

It might sound ridiculous, but they have made more than a handful of people enormous sums of money and changed the fortunes of some troubled companies as well. Both GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC) were able to sell billions of dollars worth of stock at grossly inflated prices because of the shenanigans of the Reddit traders.

Now some of the WSB traders are hoping that they can launch shares of ContextLogic stock up to similarly inflated levels.

They might be right.

Why WISH Stock Could Be a Steal

The best description I have heard of ContextLogic is that it's the equivalent of a digital flea market. Its site sells a stunning variety of stuff at low prices. Some of it is a bargain. Some of it is trash. While ContextLogic does have a site here in the United States, most of its revenue comes from Europe.

It has a presence in 100 countries that connect customers to more than half a million merchants worldwide.

The gunslingers on WSB think the stock can get to $20 or even $30 a share from the current low teens stock price.

Those hoping for another squeeze of the shorts and options market makers are even more bullish.

About 6.5% of the float is short, so we're not sure that's enough to create a squeeze.

The funny thing is that WISH stock just might be a bargain with real potential. Leading reputable brokers like Evercore, Oppenheimer, and JPMorgan Chase & Co. (NYSE: GS) have to buy recommendations on the stock with price targets of as high as $30.

Its Wish shopping app is one of the most downloaded shopping apps in the world.

In the first quarter, ContextLogic said that revenue was up by 75% year over year. Merchant partnerships are growing, especially in key Asian markets like China and Korea. Merchant signups in the region were up more than 480% over last year.

Here in the United States, merchant signups were up by more than 180%.

ContextLogic uses proprietary artificial intelligence programs to sift through the massive database of 100 million monthly active users, over 500,000 merchants, and approximately 1.8 million items sold per day to find ways to better serve its customers and add new ones.

While most of the company's merchants are based in China, ContextLogic has been working to grow the Wish Local part of the business. It currently has more than 50,000 Wish Local partners in 50 countries that sell on the Wish Local platform. Most of these are brick-and-mortar stores looking to establish an online presence.

As ContextLogic's management focuses on bringing down marketing costs, this company could end up being a fast-growing e-commerce business that serves the bargain-conscious portion of society.

This is already a company with revenue of more than $2.8 billion over the past year. Revenue growth has been steady since 2019.

The consensus among the Wall Street analysts following the stock is that ContextLogic could grow earnings by more than 70% annually for the next five years at least.

Unlike some of the meme stocks that the Reddit crowd has pushed higher, WISH stock is a real company with solid growth prospects.

It actually has management with deep experience. CEO Peter Szulczewski was a technical lead and senior software engineer at Google before founding ContextLogic.

CFO Rajat Bahri was the CFO at Jasper Technologies and Trimble Navigation before joining ContextLogic.

Vice President of Data Science and Engineering Pai Liu came to the company after serving as the Data Science Manager at Airbnb Inc. (Nasdaq: ABNB).

One thing that traders and investors have to watch out for is the fact that 46 million shares from the December IPO were unlocked on June 14th and can be sold now. With the Reddit bunch pushing the stock up over 40% in the past month, I doubt anyone rushed to sell the newly free-to-trade stock.

However, if the WISH stock price climbs back toward and even above the $24 IPO price, we could see some selling.

That's almost twice the current stock price, so you have a long way to go before that becomes an issue.