Editor’s note: This article was updated on July 8 to clarify details around Newegg’s short volume ratio.
Newegg (NASDAQ:NEGG) is one of the largest tech retailers in the country, and now, it’s a retail investor favorite for an upcoming moonshot. NEGG stock is seeing massive gains today thanks to a couple announcements… and flaming-hot NEGG bullishness across social media.
InvestorPlace’s William White reported earlier today on some of the big news coming across the desks of retail traders from the Newegg camp.
With the GPU shortage still an issue, Newegg’s recently announced PC parts lottery is a very welcome event. Through the lottery, customers will be able to buy the newest line of GPUs from Nvidia (NASDAQ:NVDA). The company is also implementing a custom PC building service, allowing the retail giant to compete with bespoke PC crafters on a commercial level.
These additions by Newegg are pushing the stock higher. However, there is more driving NEGG stock skyward today. It seems social media investors think Newegg could be the next GameStop (NYSE:GME) or AMC Entertainment (NYSE:AMC).
Social Media Rallies Around NEGG Stock
According to Fintel, NEGG stock is the most likely short squeeze candidate for the ongoing week. At a level of 31%, it is one of the highest stocks in terms of short volume. Of course, retail investors are leaping at the opportunity to squeeze it.
And indeed there was a squeeze, at least today. In less than four hours since the market’s opening bell, 39 million NEGG shares have traded hands, as compared to the 1 million daily average. NEGG stock is up 113% on the day, with shares trading at $58.12.
Social media is running rampant with posts proclaiming NEGG as the next moonshot. Some investors are confirming the idea that this is a GameStop-style short squeeze attempt with posts happy about “sticking it to the shorts.” One user forecasts their own bullish price point of $100 for NEGG in the near future.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.