Newegg Commerce (NEGG) AI Stock Analysis

• Market Cap: $837.54M
• Dividend Yield: N/A
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.37
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 762
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 19,396,400
• 10 Day Avg. Volume: 2,219,800
• 30 Day Avg. Volume: 2,115,509
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $43.00
• Price Target Upside: -0.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: $43.00 ▼(-0.42% Downside)

Newegg Commerce's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue, persistent losses, and cash flow challenges. Technical analysis indicates a bearish trend, further weighing on the score. The absence of valuation metrics such as P/E ratio and dividend yield limits the ability to assess the stock's attractiveness relative to peers.

Newegg Commerce Business Overview & Revenue Model

Company Description

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video, home audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; Xbox, Playstation, legacy gaming, and gaming titles; and home networking, commercial networking, server and components, and smart home products. It also provides display and printing, office technology furniture, office supplies, and mailing and inventory supplies; software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products; car electronics, marine and aviation, motorcycles and ATV, performance parts, tools and equipment, and wheels and tires; home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, pet supplies, and generators; and fitness, sports, and health and beauty supplies. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.

How the Company Makes Money

Newegg generates revenue primarily through the sale of products on its e-commerce platform. Its key revenue streams include direct sales of electronics and accessories, third-party seller fees from its marketplace, and advertising revenue from promoting products on its site. The company also benefits from partnerships with various brands, allowing it to offer exclusive products and promotions. Additionally, Newegg earns revenue through subscription services and value-added services such as extended warranties and tech support, which further diversify its income sources.

Newegg Commerce Financial Statement Overview

Summary

Newegg Commerce faces significant financial challenges, with declining revenue and persistent losses impacting profitability. While leverage has improved slightly, high liabilities remain a concern. Negative free cash flow highlights cash management issues, necessitating operational improvements.

Income Statement

Newegg Commerce shows declining revenue over recent years, with a decrease from $2.38 billion in 2021 to $1.24 billion in 2024. The gross profit margin has also decreased, indicating pressure on profitability. Net income has remained negative, reflecting ongoing challenges in achieving profitability. Despite these challenges, the company has managed to control operating expenses, as seen in the narrowing EBIT and EBITDA losses.

Balance Sheet

The balance sheet displays a stable equity position, though stockholders' equity has decreased from $182 million in 2021 to $121 million in 2024. The debt-to-equity ratio has improved slightly, indicating better leverage management. However, the equity ratio shows that liabilities still represent a significant portion of total assets, hinting at potential financial risk.

Cash Flow

Newegg Commerce has struggled with negative free cash flow, indicating issues with cash generation. Although operating cash flow has improved slightly from 2023 to 2024, it remains negative, highlighting challenges in turning revenue into cash. The company needs to focus on improving cash flow management to support future growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.50B	1.72B	2.38B	2.11B
Gross Profit	120.78M	167.56M	216.63M	325.98M	273.63M
EBITDA	-32.95M	-45.69M	-31.62M	44.35M	38.93M
Net Income	-43.33M	-58.99M	-57.43M	36.26M	30.43M
Balance Sheet
Total Assets	407.32M	499.05M	542.10M	626.58M	557.47M
Cash, Cash Equivalents and Short-Term Investments	99.74M	106.47M	122.56M	99.99M	156.63M
Total Debt	73.00M	90.56M	96.83M	107.23M	56.38M
Total Liabilities	301.23M	369.65M	386.87M	444.30M	429.97M
Stockholders Equity	106.09M	129.39M	155.22M	182.28M	127.50M
Cash Flow
Free Cash Flow	-4.44M	-34.10M	11.29M	-67.13M	78.36M
Operating Cash Flow	-821.00K	-3.84M	20.48M	-53.29M	84.51M
Investing Cash Flow	2.44M	-14.25M	-3.77M	-13.84M	-5.24M
Financing Cash Flow	-6.05M	1.56M	1.55M	12.74M	-1.73M

Newegg Commerce Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 43.18
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEGG, the sentiment is Neutral. The current price of 43.18 is above the 20-day moving average (MA) of 42.19, below the 50-day MA of 56.92, and above the 200-day MA of 21.04, indicating a neutral trend. The MACD of -3.90 indicates Negative momentum. The RSI at 45.32 is Neutral, neither overbought nor oversold. The STOCH value of 24.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NEGG.

Newegg Commerce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBAY	77 Outperform	$41.65B	20.14	45.99%	1.25%	3.05%	-10.82%
LQDT	74 Outperform	$852.77M	33.05	12.77%	―	38.40%	32.42%
CHWY	69 Neutral	$16.45B	111.91	38.76%	―	9.04%	-56.79%
CPNG	62 Neutral	$58.68B	162.08	7.79%	―	18.69%	-65.55%
ETSY	59 Neutral	$6.36B	51.33	-14.58%	―	2.38%	-38.88%
NEGG	44 Neutral	$837.54M	―	-45.59%	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Newegg Commerce Corporate Events

Newegg Reports Strong Growth in First Half of 2025

Newegg Commerce, Inc. announced its financial results for the first half of 2025, revealing strong year-over-year growth driven by increased demand for GPUs and other PC components, including the launch of new NVIDIA and AMD products. The company reported a 14% increase in GMV and a 13% rise in net sales, with adjusted EBITDA improving to $11.3 million from a $7.3 million loss in the same period of 2024. Newegg’s strategic cost optimization measures and focus on cash balance and working capital contributed to these positive results. The company plans to continue leveraging market opportunities and optimizing supply chain strategies to mitigate macroeconomic impacts.

Newegg Commerce Expands Share Sale and Elects New Board Member Amid Shareholder Loan Foreclosure

Newegg Commerce, Inc. announced on August 17, 2025, that its Pricing Committee authorized the sale of an additional 500,000 common shares under its existing Sales Agreement with Needham & Company, LLC. This move follows the completion of a previous sale of 1,000,000 shares in July 2025, raising $29.3 million in gross proceeds. Additionally, the company is experiencing shareholder loan foreclosure issues as East West Bank has begun selling shares pledged by the second-largest shareholder, Mr. Fred Chang, due to a loan default by Tekhill USA LLC. Furthermore, Anthony Chow, the CEO since 2020, was elected to the Board of Directors on August 9, 2025, filling the vacancy left by Mr. Chang’s resignation.

Newegg Commerce Amends Shareholders Agreement to Adjust ROFR Provisions

On August 13, 2025, Newegg Commerce, Inc. announced a third amendment to its Amended and Restated Shareholders Agreement initially dated May 19, 2021. This amendment modifies the Right of First Refusal (ROFR) provisions, limiting them to 64.72% of the company’s common shares owned by principal shareholders and their affiliates as of the original agreement date. This change could impact the company’s shareholder dynamics and influence future stock transactions, potentially affecting stakeholder interests.

Newegg Commerce Appoints CEO Anthony Chow to Board of Directors

On August 9, 2025, Newegg Commerce, Inc. appointed its CEO, Anthony Chow, to the Board of Directors following the resignation of Fred Faching Chang on July 8, 2025. This move aligns with the company’s strategic direction under Chow’s leadership, as he has been instrumental in guiding Newegg since 2020, ensuring consistent execution across the organization.