Newegg (NASDAQ:NEGG) appears to be an unwitting beneficiary of the meme stock craze once again taking hold of the market. Indeed, NEGG stock closed up more than 40%, leaving investors scratching their heads.
So, what exactly is going on with Newegg today?
Well, as meme stock king GameStop (NYSE:GME) eyes a nearly 10-year growth record, meme stocks across the board are soaring. GME jumped 24% today, making it the longest streak of consecutive gains for the video game retailer since 2010. This appears to be the story behind NEGG’s jump. Other meme stocks like Best Buy (NYSE:BBY) and AMC Entertainment (NYSE:AMC) were also in the green today, riding on GameStop’s success.
NEGG Stock Soars on Strong Day for Meme Stocks
NEGG may also be benefiting from a cryptocurrency boom underway in the market. A number of coins and tokens are seeing strong gains today, and crypto-related stocks rallied as well. The e-commerce giant is one of the more tech-forward online retailers around today. As such, Newegg accepts a variety of cryptocurrencies for payments, including Dogecoin (DOGE-USD), Shiba Inu (SHIB-USD).
As such, it’s not much of a surprise that NEGG stock is gaining along with the digital currencies it supports.
While it’s somewhat unclear if there is anything else behind Newegg’s jump today, investors could clearly care less. With shares far from their 52-week high, the massive rally is a welcome sight.
On the date of publication, Shrey Dua did not hold (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.