Newegg Commerce's shares experienced a substantial decrease of 34.3% in the previous month.
In the bustling world of e-commerce, Newegg Commerce has been making headlines recently. The company, often compared to giants like Amazon and Walmart in terms of prices and service, has seen a turbulent August, with its shares falling by 34.3% as per S&P Global Market Intelligence.
Despite this steep decline, Newegg's shares are still up more than 500% in the past three months, exhibiting the characteristics of a classic meme stock this summer. The current price of a Newegg share stands at $30.82, with a market cap of $601M.
Short interest remains high, with 85% of the float currently on loan to bearish investors. Short-seller interest soared to 331% of the market float in early July, a level possible with naked short-selling. However, as of September, the current short positions on Newegg indicate a moderate level of short interest, reflecting cautious investor sentiment but no extreme bearish positioning.
The average volume of Newegg Commerce's stock is 1,351,315, and the day's range for the shares is $29.90 - $39.82. The 52-week range for Newegg Commerce's stock is $3.32 - $137.84.
Newegg's first-half results, reported on August 21, showed a 12.6% year-over-year revenue growth and a stabilizing bottom line. This growth can be attributed to the launch of new gamer-friendly products from Advanced Micro Devices and Nvidia, which helped Newegg achieve these robust results. The company also reported more repeat customers and higher average order values.
Despite these positive developments, Newegg remains largely unprofitable after all these years. The company's net losses decreased from $25.0 to $4.2 million in the reported period, indicating a step in the right direction.
The steep drop in August and the continued downtrend in early September have raised questions about Newegg's stock, which, at 0.47 times trailing sales, still looks inexpensive to some investors. However, the volatile nature of the stock and the high short interest suggest that Newegg Commerce's shares may continue to be a rollercoaster ride for investors in the near future.
