- Newegg Commerce (NEGG) stock offers exposure to an intriguing, niche-specific e-commerce platform
- In addition, the meme stock trade could benefit Newegg’s shareholders
- Volatility-tolerant investors might consider a small stake in NEGG stock
California-based Newegg Commerce (NASDAQ:NEGG) is an electronics and computer parts e-retailer that’s been around since 2001. If you’re willing to accept the risks involved, now might be a great time to start a moderately sized position in NEGG stock.
There are plenty of e-commerce businesses you can invest in today. For truly outstanding potential gains, you’ll want to think outside the box — and look to competitors in market segments that aren’t already dominated by corporate giants.
Newegg fits that description perfectly. Some stock traders might not have heard of this company, but that’s perfectly fine, as NEGG stock could be an undiscovered gem for your tech-focused portfolio.
What’s Happening with NEGG Stock?
Before we delve into the company’s business, we have to first address the 800-pound elephant in the room. InvestorPlace contributor Shrey Dua had the scoop on a remarkable recent event you’ll definitely need to know about.
As Dua reported, NEGG stock exploded on April 29, closing up 40% in a single day. Seemingly, there wasn’t any company-specific news that would justify such a move.
Dua cited two possible catalysts. The most obvious impetus was the resurgence of the meme stock trend. Almost exactly a year after it took hold of the markets, it appeared the Reddit crowd may have been targeting stocks for short squeezes once again.
Yet Dua also considered the possibility of another catalyst. There was a cryptocurrency boom under way, and crypto-related stocks were getting a bump.
Moreover, as Dua pointed out, Newegg “is one of the more tech-forward online retailers around today” and the company’s platform “accepts a variety of cryptocurrencies for payments.”
Hence, you don’t have to be a believer in meme stocks to consider a position in NEGG stock. Cryptocurrency enthusiasts are invited to learn about Newegg and buy a few shares if they feel digital tokenization will continue to be a major factor in e-commerce.
Just be aware of the risks involved here. Cryptocurrencies are sometimes quite volatile, and they could have an impact on the Newegg share price.
A Category Leader
After learning some fast facts about Newegg, you might be surprised that the company doesn’t get more attention from investors. Newegg touts itself as a category leader, and justifiably so. Evidently, Newegg is the “largest e-commerce player in the technology vertical” with a global footprint and $2.1 billion in annual sales.
The company implies it’s in a fast-growing niche category, and there’s data to back up that idea. Notably, the global technology product e-commerce market is valued at $1.4 trillion and is estimated to accelerate at a compound annual growth rate (CAGR) of 15%.
That’s a huge category to be in, and Newegg has established itself as “an entrenched and dominant player in a large vertical.” From desktops and laptops to components and other consumer electronics items, Newegg is where technology experts often go to get the latest and greatest products.
In other words, even if you haven’t heard of Newegg or used its platform, plenty of tech aficionados have. This is a huge company that operates fulfillment centers which ship out more than 55,000 packages daily. Impressively, 91% of those are delivered within two days.
What You Can Do Now With NEGG Stock
As I’ve stated previously, “Newegg is established — cutting the risk — but has real long-term growth potential.” Still, Newegg remains unknown to some financial traders. That shouldn’t be a problem, though, since you may have a chance to invest in a high-potential, under-the-radar company.
Therefore, consider NEGG stock an asset with some risk, but also possible rewards for long-term shareholders. With that in mind, feel free to consider taking a moderately sized position in shares of Newegg.
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.