The chain is shot. But the more complete explanation is that part of the chain is more shot than the other.
Where the pins of the outside links enter the rollers of the inside links, there is friction which needs to be lubed. It takes experience to lube the chain uniformly around its entire length, and a little luck. The pins wallow out the holes of the bushings/rollers into an oval. Some of the ovals in a section of the chain are bigger than others, so as you spin the wheel you feel the dreaded "tightsie, loosie" There is no cure other than new parts.
The ovals, which are not visible, are what make us think the chain has "stretched". This is simply an inappropriate but convenient, term for the ovalling of the bushing holes.