In a market that’s seeing strong moves higher among many large-cap names today, perhaps less attention is being focused on smaller-cap or more speculative names. In particular, Newegg (NASDAQ:NEGG) is down by around 4% in today’s session, although it should be noted that NEGG stock has soared in recent trading days. Thus, perhaps this is merely a consolidation move before another leg higher.
For investors in the electronics-focused e-commerce company, that’s the hope. Chatter on Reddit has been picking up, with NEGG stock being pegged as a trending topic for speculators to watch.
Indeed, in previous meme stock rallies, NEGG has seen some impressive moves higher. Accordingly, the move this stock has seen over the past week — surging from around $1.10 per share to around $1.60 per share at the time of this writing — is enough to get many speculators interested once again. This is a more speculative play with momentum. And in this high-flying market, that’s all many investors need to see.
With sentiment reportedly moving in the right direction for NEGG stock (according to Hedge Social), could this be the next big meme stock to keep an eye on?
How High Can NEGG Stock Fly?
Like many meme stocks that saw incredible surges in 2020 and 2021, Newegg lost much of its speculative fervor over 2022. Driven by pandemic-related interest in everything e-commerce and gaming/technology-related, the firm saw a surge in interest around both its platform as well as NEGG stock.
Now, with most of the enthusiasm from this previous rally behind it, investors may be positioning themselves for the next leg higher. Currently trading at a fraction of its previous all-time high, with a market capitalization of roughly $600 million, there’s plenty of upside potential to be had with this stock. That is, if retail investors all decide to enter at once and pile into shares.
It’s also worth noting that Newegg has a relatively high short interest as a percentage of its float. If this number moves higher as short sellers pile in, there could be a setup for some explosive price action near-term.
Right now, I’m not sure exactly how high NEGG stock can fly. In the world of e-commerce companies, Newegg certainly remains among the more speculative picks. That said, this is a company I think speculators and risk-loving retail investors may want to keep on the radar over the next few weeks. It’s certainly a stock I’ll be watching from here.
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On the date of publication, Chris MacDonald 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.
