- Newegg Commerce (NEGG) stock is much more than just a stock for meme traders.
- The company is branching out into an interesting niche sales category.
- Investors should consider a moderate position size in shares of Newegg.
California-based Newegg Commerce (NASDAQ:NEGG) is an electronics and computer parts e-retailer. NEGG stock deserves a place on your watch list as an interesting technology investment with upside potential.
Of course, there are a number of e-commerce businesses you can invest in today. Some of these names are already pricey, though. Maybe it’s time to consider a stock that’s cheap today, but could be expensive later on.
NEGG stock might fit that description. Newegg isn’t just an ordinary e-commerce business. It occupies an important niche sales category, where technology part buyers can get the components they might not be able to find elsewhere.
Furthermore, it appears that Newegg is preparing to expand its offerings. That’s a bullish sign, as it could lead to revenue growth to Newegg Commerce.
| NEGG | Newegg Commerce | $6.28 |
What’s Happening With NEGG Stock?
Unfortunately, Wall Street likes to pigeonhole stocks sometimes. This may have happened with NEGG stock, as it surged on April 29, closing up 40% in a single day.
There didn’t appear to be any company-specific news to catalyze such a price move. It’s possible that Reddit traders targeted Newegg for a short squeezes.
That’s right: the meme stock traders are back in action. NEGG stock took a round trip from $10 to $70 and back. Folks who jumped on the hype bandwagon at the wrong time were severely punished.
More recently, the stock was quite affordable at $6 and change. That’s a low price of entry, to take a stake in a category leader. After all, Newegg is the “largest e-commerce player in the technology vertical” as the company has a global footprint and $2.1 billion in annual sales.
We’re not talking about a tiny company here. Newegg operates fulfillment centers that ship out over 55,000 packages daily. 91% of those packages are delivered within two days, so this can keep the customers happy and coming back for more.
From PC Parts to E-Bikes
Newegg Commerce’s customers can easily purchase a broad variety of technology components. You just never know what will be available in the near future on Newegg’s e-commerce platform.
For example, Newegg just revealed new customization options. In particular, the company disclosed that it’s now offering personal laser engraving on PC cases and custom PC builds.
Customers can choose from a variety of font styles and sizes for the engraving, and the placement of the text can be customized to the user’s choice. This will allow the customer’s PC to be “100 percent unique and reflect their own personal style,” according to Vishal Mane, director of engineering for ENIAC, Newegg’s custom PC assembly division.
That’s not the only exciting product or service on the menu, though. In addition, Newegg Commerce just released details about the company’s wide assortment of electric bikes (e-bikes).
“With high gas prices, electric bikes have become more popular than ever and offer a sustainable green solution to global air pollution,” the press release observes. This is a valid point, and a good reason for Newegg to offer a platform where the customers can buy these e-bikes.
To help consumers make better buying decisions, Newegg Commerce has an educational educational video offering customers information about e-bike features and options. Only time will tell, but Newegg might just have tapped into a future-facing, high-conviction niche market with electric bikes.
What You Can Do Now With NEGG Stock
Clearly, Newegg isn’t a run-of-the-mill e-commerce business. It’s also a bigger business than the share price might suggest. I give NEGG stock a “B” in my Portfolio Grader.
You don’t have to own NEGG stock as a meme stock trade. Instead, investors can consider taking a small position in Newegg Commerce as the company provides a platform for high-potential niche products and services.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.