To The Moon

Wall Street stocks closed sharply higher on Friday as rising expectations of a December interest rate cut by the Federal Reserve offset concerns over lofty tech valuations. A broad rally started gathering momentum by late morning, pushing all three major U.S. stock indexes to substantial gains on the day.

The best-performing concepts is Interactive Media & Services Concept. Considering the different perceptions of the stock, this time TigerPicks chose $WeShop Holdings (NASDAQ Direct Listing)(WSHP)$ to have a fundamental highlight to help users understand it better.

In the past five days, $WeShop Holdings (NASDAQ Direct Listing)(WSHP)$ 's share price has risen by 275.37%.

$WeShop Holdings (NASDAQ Direct Listing)(WSHP)$

Shares of WeShop Holdings Limited (WSHP) have been an extraordinary performer since launching via a direct listing IPO last week. While we have seen many high-flying momentum stocks get hit hard during the recent bout of market turbulence, this performance is a reminder that small-float stocks can see dramatic interest upon generating “meme” interest (there has been considerable discussion of shares on X, for example). Often, though, as we have seen in past situations, these situations can be short-lived. With a unique business model and significant retail interest, now is a good time to analyze WSHP’s prospects. I would steer clear of shares.

WeShop has no material earnings power yet

WeShop is a UK-based shopping social network with plans to expand to the US. What sets it apart from virtually any other company is its “ShareBack” program. Essentially, every time you make a purchase with its app or refer a new member to open their account, you earn shares in the stock. This is a fairly unique mode that has no clear comparisons. With 23 million shares outstanding, the company has a $4.6 billion market capitalization, so there is considerable excitement about it.

$AMC Entertainment(AMC)$ is a company whose stock over the past few years has seen significant volatility amid “meme” crazes. It has leaned into its following among retail traders with its investor connect program, which essentially gives AMC shareholders additional perks. This is an example of a company rewarding shareholders with business perks. WeShop essentially inverts this model, giving customers equity in its business.

Now, as you can see in its prospectus, Weshop is still a company in its infancy. It ended March with just 72,000 transacting customers, and over ~3 years, total volumes were below $150 million, even as it has now signed up 500 UK retail partners. After growing steadily during 2022-2023, the user count has basically stopped as it has focused on its expansion into the US.

In all of 2024, it generated 1.3 million pounds of sales with 12.2 million in costs. Gross margin was -4.3 million, and G&A of 4.1 million was more than 3x revenue. This business is still in its infancy, and investors buying shares of WSHP are really buying into the promise of what could be rather than any existing financial performance. In the first half of 2025, sales were below 300k, down by more than half from last year, and it lost 4 million. This decline was because it completed its pilot proof of concept work and pivoted its focus towards its planned expansion into the US. As of June 30th, the company had ~$100k of cash and a book equity value of 4 million GBP. Again, its market cap is now ~$4 billion.

Its stock rewards program is unique

WeShop’s model centers on its unique ShareBack program, which returns 80% of its commissions to users as WePoints—each equal to one share based on the prior day’s stock price. Users also earn 5% of the WePoints generated by their referrals for a year, incentivizing strong viral growth. As more users join, WeShop can onboard more retail partners.

The platform aims to build a shopping-focused social network where users share reviews, while retailers use WeShop as an affiliate and advertising channel. Success depends on adding enough retail partners—already achieved in the UK with names like $eBay(EBAY)$ —and attracting a large user base that finds stock-based rewards appealing.

However, WeShop faces heavy competition from established loyalty programs offering clear-value rewards like cash back or points. The appeal of equity as a reward is uncertain, and engagement could fluctuate with WSHP’s share price—benefiting from rallies but hurt when the stock falls.

Affiliate margins will be low; advertising is key

Even with strong user growth, WeShop’s profitability looks doubtful. Giving back 80% of affiliate fees caps gross margins at roughly 20%, and after factoring in dilution, operating costs, and referral payouts, the affiliate business is likely only breakeven. With margins far below peers like $DoorDash, Inc.(DASH)$ , its core operations are unlikely to generate real profits.

Practically, WeShop must function as an advertising business. But to justify its current valuation, it would need around $200 million in net income—requiring roughly $500 million in annual ad revenue at a 40% margin. That would demand an enormous user base: even assuming $60 in revenue per user (10× Pinterest levels), WeShop would still need about 8 million monthly active users. This level of scale appears highly unrealistic given its early stage and unproven model.

Too much optimism is priced in

My point is that WeShop’s share price is already discounting an extraordinary amount of growth. This may turn into a sizable business, but it has to become one to justify where shares are trading. Plus, its model does not appear differentiated. There is nothing stopping $Delta Air Lines(DAL)$ , for instance, from offering customers the option to redeem SkyMiles in DAL stock vs free Delta flights. Virtually any public company can do that. I am not sure how popular the WePoints concept will be vs traditional loyalty offerings.

I am skeptical that this business ever achieves scale, but even if I am wrong, the stock is discounting WSHP accumulating several million users and becoming a major advertising business. With so much good news priced in and this company not having any material presence yet in the US, I expect WSHP to be like so many meme stocks we have seen. While the rally is incredibly powerful, shares will likely push lower over time. With such extreme volatility, I would never outright short WSHP, as it could go higher first. That said, in time, fundamentals will win out, and I am highly skeptical that this will be a multi-billion dollar business. I view shares as a strong sell as the business is unlikely to ever grow into the valuation already being ascribed to it.

Stock Price Forecast:

After a stunning week that saw a 7-day share price return of 275.4%, WeShop Holdings has been riding a wave of intense trading momentum. Even with yesterday’s 26.8% pullback, the stock’s year-to-date share price return remains strong. This suggests sentiment is still running high, but volatility and shifting risk perceptions are firmly in play.

Trading on WeShop opened at $20.02 on November 14 after the company's direct listing on the Nasdaq and peaked at $250.00 on November 19.

Resource:

https://seekingalpha.com/article/4846056-weshop-avoid-this-meme-stock

For SG users only, a tool to boost your purchasing power and trading ideas with a Cash Boost Account!

Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with upcoming 0-commission, unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD 5000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.

Click to access the activity

Other helpful links:

• 💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉

• How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.