Just like other short-squeeze stocks popular during June, ContextLogic (NASDAQ:WISH) stock so far in July has been falling back to earth.

On July 1, the e-commerce play was trading for around $12.24 per share. It’s back down to single-digit price levels of around $9.50 per share today.

In my previous article on it, I questioned the ability of the Reddit trader army to send it back to the moon.

Mostly, due to it being apparent that the second wave of “meme stock mania,” that emerged in late May, was running out of gas. Also, the fact that the company’s return to high growth would take time (a few quarters from now).

That wasn’t soon enough for speculators with time horizons measured in days and weeks, rather than months. Yet, this impatience, which has resulted in shares taking a more than 25% dive, may be good news for investors just looking at it today.

The short-squeeze angle may no longer be in play, but at or below today’s prices, it may be worth buying ahead of it getting back on the growth train and again becoming a stock worthy of a much higher valuation.

WISH Stock and the End of the Second ‘Meme Stock’ Wave

Traders active on Reddit’s r/wallstreetbets and other platforms may have tried to recreate the magic seen during the initial “meme stock” wave that happened in late January and early February, but, this second go-around didn’t last long.

It’s not just WISH stock that’s back near where it traded before this second wave began nearly two months back. Clover Health (NASDAQ:CLOV), another popular squeeze play, has given up its second wave gains as well.

Even AMC Entertainment (NYSE:AMC), which made another epic run higher, has given up the bulk of its most recent gains.

Assuming the “short squeeze” trade was still in play, who’s to say ContextLogic shares would even benefit? That is, its “short squeeze” bona fides were dubious.

As of June 30, only 13.7% of its outstanding float was sold short. Not only that, short interest between May and June went down, from 24.12 million shares, to 20.98 million shares.

Looking back, it’s clear that the “short squeeze story” crafted for WISH shares was more hype than substance. Yet, there is a new story emerging, where the facts may line up a whole lot better.

That is the story of its re-entering growth mode in the upcoming quarters, allowing it to get back toward the price levels it traded for at the start of this year.

Drifting Back to Single-Digits for Now

ContextLogic may have found a new life as a short-squeeze “meme stock” in recent months, but if you can recall, it started off as a way to play the e-commerce megatrend.

Thanks to its own pandemic tailwinds, the underwriters of its public offering were able to price it high ($24 per share) for its December 2020 IPO.

After a sideways start, shares saw a major move higher to as much as $32.85 per share in early February because tech stocks were running hot.

As opposed to the “meme stock” trend that emerged during that time frame. So, what was it that caused it to crater after that, to as low as $7.52 per share?

To some extent, due to the extended sell-off in richly-priced growth stocks. But mostly, due to concerns its growth was set to slow down considerably post-Covid.

This sentiment was made worse by the company’s mixed results and underwhelming guidance released back in May.

However, this may not be a long-issue. Instead, it may wind up being more of a short-term hiccup.

As InvestorPlace’s David Moadel recently broke it down, there’s plenty to indicate the company is moving along with turning its Wish.com platform into a global e-commerce powerhouse.

Once its efforts show up in its quarterly results? Shares may have a clear path back toward prices well above where they trade today.

Diving in Now May be the Play

Given its potential, ContextLogic shares could have a way to get back to double-digit price levels.

When it comes to turning Wish.com into a major e-commerce platform, it’s still putting in the work to make this happen. This bodes well for its long-term prospects. But this may not mean an immediate bounce back for the stock.

A rebound may take months to happen, but, given the potential for WISH stock to make triple-digit percentage gains once it starts to play out, the best move may be to make it a bottom-fisher’s buy today.

You could do well holding onto this “story stock” until it becomes hot once again.