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Newegg Commerce, Inc.NN

Newegg Commerce, Inc.

0.2635USDR
−0.0095−3.48%
As of today at 15:36 GMT
USD
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NEGG trade ideas

NEGG bullish energyThis idea was a request. I attempted to focus on into the end of the year. I have bullish energy, however, it is going to likely make a new low to some extent, so don't be surprised there. But I also have a lot of messages about new highs. Specifically, I get the message about a V-bottom and a price over $1, and specifically $1.70 and something about perhaps holding for 12 weeks. That puts it in the timeframe of December 12th, so there may be something there. I'm not super confident with longer term ideas, but am just going to keep trying.
NLong
by JenRz
Newegg bottoming might be in progress? First target 2.30 USDI have following newegg for quiet a few years now. Tehcnicly it is possible we have either bottomed, OR will bottom in the very near future. From an elliott wave perspective I have 2 scenarios, where scenario one assumes we have already bottomed in the consolidation zone down around 1 USD. (Even if we have not bottomed, we gonna get a bigger ABC-or WXY correction possibly reaching at least the 1:1 target). It is possible (but not guaranteed) we have put in the first subwave 1 as a leading diagonal (expanding rising wedge), where we have moved in 3 counts in each wave as an abc (watch for extended trading hours!!!). We could argue where is the white wave 1 top - either we had an overshooting b wave and the yellow c wave already bottomed as well (possible), OR the b wave currently forming and will followed by the yellow c wave down, but keeping the higher low overall. I am scaling in slowly on the pullbacks for now with the stoploss just under 1.00 USD. Since it is a leading diagonal at best, we cannot really trust it until it proves itself. I am waiting to see a more defined abc pullback structure for now, support areas are added. Overall we have just danced around the 200day MA, 180day MA provided support, all the other moving averages (9/21/50) are below us, in case pullback coming possibly giving as more support. Daily RSI and MACD turning upside, selloff slowing down, and about to diverge (already in convergence). Weekly datas getting stronger (RSI/MACD), and currently we are above the defined baseline, which will also possibly provide support on pullbacks. Whoever like formations, seemingly we are forming a bigger falling wedge (bullish), even is the lows not in YET (then it is quiet near probably). Also, it is not uncommon that if wave 2 have finished and starting/started the white wave 3, will form some kind of inverse head and shoulders, watch for that as a little confirmation (still not guarantee). Overall I think it has a good chance now to bottom and start an upside cycle.
NLong
by tommtajlor
21
$NEGG Holiday season is finally underway and shoppers are already waiting to capitalize on Black Friday and Cyber Monday deals. This is great news for all retailers including Newegg Commerce, Inc. (NASDAQ: NEGG). The e-commerce retailer specializing in electronics has been struggling lately due to the weakness of the PC market resulting from weak demand, excess supply, and worsening macro conditions. Fortunately for Newegg, many analysts expect the PC market to rebound in 2024 as the business PC market is entering the next replacement cycle driven by the Windows 11 upgrades. At the same time, consumer PC demand is expected to recover as PCs purchased during the pandemic are entering the early stages of a refresh cycle. Considering that the company’s sales are directly correlated to the conditions of the PC market, NEGG stock could be at an attractive valuation at current levels for long-term investors. NEGG Fundamentals Seasonal Boost Q4 has always been Newegg’s best in terms of revenue. Over the last 3 years, we can see that the most revenue it reports is in Q4. As such, NEGG stock may run over the coming weeks as we are in holiday season. Quarters 2022 2021 2020 Q1 $445,270,000 $603,436,000 $431,350,000 Q2 $445,270,000 $603,436,000 $431,350,000 Q3 $349,158,000 $540,898,000 $554,023,000 Q4 $480,575,000 $628,455,000 $698,149,000 Looking to boost sales in this season, the company recently unveiled its November sales plans including Black Friday-related deals all month to help shoppers get a head start on holiday shopping. After all, 39% of shoppers plan to start their holiday shopping in November, per a recent Shopify-Gallup survey. With that in mind, this holiday season has the potential to be the best in many years as the same survey found that 74% of shoppers expect their holiday gift budget to remain the same or increase compared to last year. As is, a September report from Deloitte forecasts retail sales to grow between 3.5% and 4.6% YoY, driving holiday sales to between $1.54 trillion and $1.56 trillion between November 2023 and January 2024. This bodes well for Newegg since according to the Shopify-Gallup survey 35% of shoppers plan to buy electronics which is the company’s specialty. Moreover, 29% of shoppers plan to buy an item worth more than $500 in hopes of getting a better deal. Therefore, Q4 2023 is shaping up to be Newegg’s best in recent years. PC Market Rebound Will Boost Sales While the holiday season will definitely be a much-needed tailwind for NEGG stock in the short term, the anticipated rebound of the PC market in 2024 will be a major catalyst for the stock. The PC industry is traditionally cyclical due to the volatility of demand for PCs. As such, the industry constantly goes through peaks and troughs and is generally unstable. Over the last 8 quarters, the PC industry has been hammered due to several reasons including Covid slowdowns, inflation, and rising interest rates which impacted consumer spending. At the same time, PC manufacturers were riding high amid the pandemic as consumers sought their products to work from home during lockdowns, which led them to increase production. However, as return-to-office policies started being implemented, PC manufacturers were left with excess inventory, while consumers found it hard to find the cash for new PCs due to high prices and financing costs. According to Gartner, worldwide PC shipments totaled 259.4 million in 2018, down 1.3% from 2017. The effects were still being felt in 2019, adding pressure to the global PC market as demand for PCs declined by 5% in the first half of 2019. However, PC shipments increased 0.6% in the second half of 2019, surpassing 261 million units. Then the pandemic hit, and work-from-home policies led PC shipments to further increase by 4.8% in 2020 and surged another 9% in 2021. But this trend came to an end in 2022 as PC shipments plummeted 28.5% YoY, the largest YoY decline since Gartner began tracking shipments. Given that Newegg specializes in PC hardware, its performance matched the broader PC market. Its revenues increased from $1.5 billion in 2019 to $2.1 billion in 2020 and peaked at $2.3 billion in 2021 when demand for PCs was at its highest. However, with the steep decline in the PC market in 2022, the company’s revenues declined to $1.7 billion in 2022 and is on track to further decline this year as management expects full-year revenue to amount to $1.52 billion to $1.58 billion. Despite that, there is a reason to be optimistic as the PC market appears to be stabilizing as inventory levels fall and more consumers seek out newer PCs. In fact, Gartner analysts suggest that the worst may be over by the end of 2023. This is mainly due to the business PC market preparing for the next replacement cycle fueled by Windows 11 upgrades. At the same time, PCs bought during the pandemic are entering the initial phase of a refresh cycle which should allow consumer PC demand to recover in 2024. These factors have led Gartner to forecast PC shipments to grow 4.9% YoY in 2024, allowing PC-related companies to rebound as well like Newegg. Valuation & Price Target As we’re heading into 2 major catalysts for retailers and PC-related companies, NEGG stock may be well-positioned to run from current levels as it appears to be undervalued based on a number of valuation metrics. Using the lower end of the company’s revenue guidance of $1.52 billion, NEGG stock is trading at 0.19 times its expected sales. This is extremely undervalued compared to the sector median of 0.79. However, to reach a fair price target for the stock, using its forward EV/Sales could be a better indicator since it considers NEGG’s debt and cash. Using this ratio also shows the stock to be undervalued with a forward EV/Sales of 0.18, much less than the sector median of 1.1. As such, a fair price target for NEGG stock could be $4.72, implying a 517.4% upside from current levels. Risks Although NEGG stock could be a bargain at current levels, there are risks that investors should consider first before investing in the stock. The first risk is the heated competition in the e-commerce sector from upstart platforms and large retailers like Amazon. This competition could lead to price wars that would hinder NEGG’s ability to grow, especially since it is operating at poor margins. Another risk to consider is that the stock is non-compliant with the NASDAQ $1 minimum bid price requirement as it recently received a notice from the exchange providing it until May 6th, 2024 to regain compliance. While the company’s recently announced $10 million share buyback program could help it regain compliance, it is still not guaranteed, and the company could have to resort to effecting a reverse split to maintain its NASDAQ listing. Technical Analysis On the hourly chart, NEGG stock is in a neutral trend as it is trading in a sideways channel between $.54 and $.75. Looking at the indicators, the stock is above the 200, 50, and 21 MAs which is a bullish sign, confirmed by the bullish MACD. While the RSI is neutral at 64, the stock is gaining momentum and profit taking may occur. As for the fundamentals, 2 catalysts will impact NEGG stock which are the holiday season and the anticipated rebound of the PC market in 2024. Given that the stock could be undervalued based on some valuation metrics, it could be a bargain ahead of both catalysts. With that in mind, investors looking to enter a long position in NEGG stock could wait for a pullback near $.75 – $.78 as it might be a good level to accumulate shares. NEGG Forecast With the holiday season underway, NEGG stock may be poised to rebound from the lows it reached recently due to the anticipated seasonal revenue boost. However, the anticipated rebound of the PC market could have a major impact on the stock since its sales are correlated with PC demand. As is, the PC market is very likely to stabilize next year as inventory levels fall and more consumers seek out newer PCs as part of the refresh cycle. Given that NEGG stock is likely undervalued based on its forward P/S and EV/Sales ratios, it could be a bargain for investors bullish on the PC market’s outlook, especially with its $4.72 price target.
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by Penny_Stocks_Today
New Egg Hatching?We have identified a zone of support and resistance on New Egg (NEGG), an e-commerce platform we visit when building computers. According to Nick Shawn, a popular trader on YouTube, support and resistance zones are merely a location that is convenient for setting up a risk vs reward structure. Since there is no guarantee. Price could go either way. Zones help him decide if, when, or where to place a trade. It is only a strategic place to make decisions about how to manage a trade in advance. How you attend to the trade is up to you, whether it's buy & hold, day trading, or swing. Nobody knows the future. He is not a financial advisor. We are not financial advisors. You will probably lose money. Managing risk is how traders make profit targets and avoid losing too much. We are not recommending anything! The risk/reward structure is determined in advance, before placing a trade, using the long or short position tool. You decide how much, if anything, to risk. And apply your own back-tested strategy for managing outcomes. That said, we have identified this zone, also called an order block zone. And we will be using an order block management strategy for this. Or possibly look for a double bottom. We have a long bias on New Egg from using the website to price components. The price closed 5% above the all-time low of $1. Which we think is a key value for penny stocks. And there has been some positive volume in the past few months. So maybe more of that will arrive. But e-commerce is a tough business. We could all just suddenly stop shopping online and take up local manufacturing and goat herding instead, because of the high demand for local, off-grid products. And the universe could start collapsing tomorrow into a giant egg because of a new and undiscovered property of physics.
NLong
by Hellork
1
$NEGG - Could be a good play for risk takers onlyNASDAQ:NEGG looks to be basing. Well one might say if it goes down any further, its zero. But there is a bullish divergence on the Weekly MACD and Monthly MACD is about to do a bullish cross. $2.60 to $4 would be a hard resistance. With a short interest of 12%, it will take ~7 days to cover. It saw a bit of short squeeze action last week. Its an unpredictable stock with violent moves up and down. Targets - $2.66, $4, $9.90, $17.00 Risk - It can go to zero. You can lose it all.
NLong
by PaperBozz
NEWEGG Stock Chart Fibonacci Analysis 070923 Trading Idea 1) Find a FIBO slingshot 2) Check FIBO 61.80% level 3) Entry Point > 1.16/61.80% Chart time frame : B A) 15 min(1W-3M) B) 1 hr(3M-6M) C) 4 hr(6M-1year) D) 1 day(1-3years) Stock progress : A A) Keep rising over 61.80% resistance B) 61.80% resistance C) Hit the bottom D) Hit the top Stocks rise as they rise from support and fall from resistance. Our goal is to find a low support point and enter. It can be referred to as buying at the pullback point. The pullback point can be found with a Fibonacci extension of 61.80%. This is a step to find entry level. 1) Find a triangle (Fibonacci Speed Fan Line) that connects the high (resistance) and low (support) points of the stock in progress, where it is continuously expressed as a Slingshot, 2) and create a Fibonacci extension level for the first rising wave from the start point of slingshot pattern. When the current price goes over 61.80% level , that can be a good entry point, especially if the SMA 100 and 200 curves are gathered together at 61.80%, it is a very good entry point. As a great help, tradingview provide these Fibonacci speed fan lines and extension levels with ease. So if you use the Fibonacci fan line, the extension level, and the SMA 100/200 curve well, you can find an entry point for the stock market. At least you have to enter at this low point to avoid trading failure, and if you are skilled at entering this low point, with fibonacci6180 technique, your reading skill to chart will be greatly improved. If you want to do day trading, please set the time frame to 5 minutes or 15 minutes, and you will see many of the low point of rising stocks. If want to prefer long term range trading, you can set the time frame to 1 hr or 1 day.
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by fibonacci6180
NEGG Hedged Options PlayHome and office electronics e-tailer Newegg Commerce sells computers, parts, accessories, home video/audio, phones, wearables, digital cameras, gaming consoles and titles, smart home entertainment products, office supplies, software, digital downloads, auto, motorcycle, marine and aviation electronics, parts, tools and equipment, home improvement tools and appliances, fitness, sports, and health products. NEGG has become a bit of a meme stock, reaching ATH of $75+ in July of 2021, but has since corrected back down to ~$1-2. With the possibility of NEGG hitting the level of the previous bottoms of this double bottom pattern (~$2.60) or falling to that previous low of 1.16, here's a fixed income strategy that captures the growth potential while also cushioning from a large drop. We can make a fixed 36% (37% annualized) as long as the stock price does not fall below $1.45. Further downside protection: only start to lose any of the investment if NEGG falls more than 44% to below $1.11 through expiration. Sell 3 $1.5 puts, exp 1/19/24 Capital Requirement: $332
NLong
by oliveinvest
NEGG 200ma Cross since Dec 2021. Building MomentumNEGG I have to say this was a surprise finding this at this price. I always see my dad who is old school radio shack kind of PC guy, on this app and geeking out over their sales and products. So to see it this low grabbed my attention. Some things I saw that were interesting is the Volume is 7x over its daily avg. The float is amazingly low at 12.21 mil. So another way to look at that is its turning the float every hour. as it builds its turning it faster and faster. which means we are swapping older buyers out with new hungry retail buyers every hour. I see this thing launching back to something more worthy of its numbers. The volume on this just hit 40 mill..... Price target $5.55 by iCantw84it 01/13/23
NLong
by iCantw84it
1
$NEGG - Looking like a memeNEGG is currently at $1.65 or a 600 mil market cap. To be fair, with the amount of competition out there selling computer parts and NewEgg's fall from grace with people like Steve from Gaming Nexus calling them out on cheap-o practices when it comes to their customer return policies about items that were already damaged before the customer accepted, it's a not completely unfounded price. On top of this, gaming hardware is easier to get from anywhere else other than NEGG these days. People even prefer GameStop rather than NewEgg which is a new trend. So, what reason is there go try out NEGG? Nothing other than the fact that it's setup e.g price, market cap and sector are similar to those of GME and other meme stocks during the great meme stock war of 2021. With the banks pricing in the next rate hike to another 50 basis points and a SPY target of $425-$450 meaning there will be a slight price pump even for less loved stocks like this one, a price target of $2 isn't completely impossible. My Idea People are always looking for the next meme stock pile in for a profit. Most bystanders were wishing they bought in when the price was stupidly low e.g like NEGG being $1.6. NEGG already has the attention of WSB and generally reddit due to it's attractive price and i think it's only a matter of time until WSB, reddit and the internet in general picks up on NEGG's setup and the usual meme snowball with NEGG starts. I've taken a look at NEGG's price behavior (and nothing else), and i've noticed that it loves doing a double tap on the lower RSI level before lifting off. If you look at the chart where i've circled the previous NEGG "runs", there's always a decent dump on the first time the RSI is touched. When the RSI is touched on the second time, it's time for liftoff very soon after. This has occurred 2 times in the past few quarters and it looks like we're on time for the next occurence of this. I'll bet you that WSB and reddit becomes interested in NEGG just around that time tha would leave people in awe of such a "coincidence" in timing. This is the whole "thesis". I've not looked at NEGG swaps, other cyclical signals. The only thing that differentiates NEGG from the likes of GME and AMC and generally the rest of the meme bunch is that it is oddly profitable, just barely so, but profitable otherwise. I think NEGG is screwed long term and will be eaten up by wallstreet and hedge funds wanting to take it into bankruptcy. The way their business is not very likeable to the likes of Steve from Gamer Nexus who strangely keeps picking on Newegg. Steve may be one of us from the generation where Newegg was THE place to go to for people looking for hardware in the US and may still just be shopping from there simply for the reason that it's his preferred shop. I don't think Gamer Nexus steve is part of any elaborate scheme to make NEGG look bad in order to move the stock down as his reasons for being angry at NEGG are valid although perhaps a bit overblown in presentation of. Finally So yes, i think NEGG will do one of it's usual weird pumps to a stupidly high price like it has a few times in the past and that this is coming within the next 2-3 months max. I've bought 50 NEGG calls expiring in May 2023 at the $2 strike for 0.35 each. On the offchance that this stock does do what it normally does, a dumb price like $26 isn't out of the question, especially if the likes of memers on WSB eventually start piling in onto this opportunity. The idea here is to be ahead of the meme curve by being proactive and not to yolo when IV's and prices are stupidly high. Good luck to you if you decide to try this one out. I've invested first and plan to do the research later on this one.
NLong
by leenixusu
5