tiprankstipranks
Trending News
More News >
Newegg Commerce (NEGG)
NASDAQ:NEGG

Newegg Commerce (NEGG) AI Stock Analysis

Compare
468 Followers

Top Page

NE

Newegg Commerce

(NASDAQ:NEGG)

Rating:57Neutral
Price Target:
$17.00
▲(2.47%Upside)
Newegg Commerce's overall stock score reflects the significant financial challenges it faces, including declining revenue and negative cash flow. However, strong technical momentum provides some positive outlook, even as valuation remains difficult to assess due to missing metrics.

Newegg Commerce (NEGG) vs. SPDR S&P 500 ETF (SPY)

Newegg Commerce Business Overview & Revenue Model

Company DescriptionNewegg Commerce, Inc. (NEGG) is a prominent e-commerce company primarily focused on delivering a wide range of technology and electronics products. Catering to both consumers and businesses, Newegg offers products across categories such as computer hardware, software, gaming, consumer electronics, and accessories. The company operates globally, providing a comprehensive online shopping platform that includes detailed product information, customer reviews, and personalized shopping experiences.
How the Company Makes MoneyNewegg makes money primarily through the sale of products on its e-commerce platform. The company generates revenue by purchasing goods from manufacturers and distributors, which it then sells to customers at a markup. Additionally, Newegg offers a marketplace platform where third-party sellers can list and sell their products, earning Newegg a commission on these sales. Key revenue streams also include premium membership services that offer benefits like expedited shipping, as well as advertising services where manufacturers and vendors pay for increased visibility on the platform. Newegg's strategic partnerships with tech manufacturers and distributors enable it to offer a wide selection of products, contributing significantly to its revenue.

Newegg Commerce Financial Statement Overview

Summary
Newegg Commerce faces significant challenges across its financial statements, with declining revenue and persistent losses. While there have been improvements in leverage, high liabilities relative to assets and negative cash flow indicate financial instability. The company needs to focus on enhancing cash management and profitability.
Income Statement
35
Negative
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
45
Neutral
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.24B1.50B1.72B2.38B2.11B
Gross Profit120.78M167.56M216.63M325.98M273.63M
EBITDA-32.95M-45.69M-31.62M44.35M38.93M
Net Income-43.33M-58.99M-57.43M36.26M30.43M
Balance Sheet
Total Assets407.32M499.05M542.10M626.58M557.47M
Cash, Cash Equivalents and Short-Term Investments99.74M106.47M122.56M99.99M156.63M
Total Debt73.00M90.56M96.83M107.23M56.38M
Total Liabilities301.23M369.65M386.87M444.30M429.97M
Stockholders Equity106.09M129.39M155.22M182.28M127.50M
Cash Flow
Free Cash Flow-4.44M-34.10M11.29M-67.13M78.36M
Operating Cash Flow-821.00K-3.84M20.48M-53.29M84.51M
Investing Cash Flow2.44M-14.25M-3.77M-13.84M-5.24M
Financing Cash Flow-6.05M1.56M1.55M12.74M-1.73M

Newegg Commerce Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.59
Price Trends
50DMA
7.99
Positive
100DMA
7.23
Positive
200DMA
9.43
Positive
Market Momentum
MACD
2.30
Negative
RSI
67.72
Neutral
STOCH
84.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEGG, the sentiment is Positive. The current price of 16.59 is above the 20-day moving average (MA) of 12.44, above the 50-day MA of 7.99, and above the 200-day MA of 9.43, indicating a bullish trend. The MACD of 2.30 indicates Negative momentum. The RSI at 67.72 is Neutral, neither overbought nor oversold. The STOCH value of 84.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEGG.

Newegg Commerce Risk Analysis

Newegg Commerce disclosed 70 risk factors in its most recent earnings report. Newegg Commerce reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Newegg Commerce Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$17.14B46.2576.24%7.64%369.79%
77
Outperform
$35.20B18.2536.48%1.52%2.04%-15.61%
73
Outperform
$756.17M30.7014.01%35.78%23.49%
68
Neutral
$54.99B219.026.06%20.88%-80.08%
68
Neutral
$54.99B219.026.06%20.88%-80.08%
67
Neutral
¥252.23B13.186.50%2.78%5.06%-11.83%
64
Neutral
$5.67B38.62-39.97%2.18%-32.87%
57
Neutral
$321.79M-45.59%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NEGG
Newegg Commerce
16.59
-5.21
-23.90%
EBAY
eBay
76.36
24.48
47.19%
LQDT
Liquidity Services
24.22
4.32
21.71%
ETSY
Etsy
54.37
-1.00
-1.81%
CHWY
Chewy
41.29
16.49
66.49%
CPNG
Coupang
30.29
8.88
41.48%
CPNG
Coupang
30.29
8.88
41.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025