Newegg Commerce (NEGG) AI Stock Analysis

• Market Cap: $1.51B
• Dividend Yield: N/A
• Average Volume (3M): 893.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.97
• 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: 268,053
• 30 Day Avg. Volume: 893,898
• PEG Ratio: 0.13
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -34.45
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $82.00 ▲(55.33% Upside)

Newegg Commerce's overall stock score is primarily influenced by its financial performance challenges, with negative profitability metrics and moderate leverage. Positive technical indicators provide some support, suggesting bullish momentum. However, the lack of valuation metrics adds uncertainty to the stock's assessment.

Positive Factors

Partnership with Shein

The partnership with Shein expands Newegg's market reach and customer base, potentially driving sales growth and enhancing brand visibility.

Revenue Growth

Strong revenue growth driven by increased demand for GPUs and PC components indicates robust market demand and effective sales strategies.

Financial Flexibility

The new credit facility provides Newegg with increased financial flexibility, supporting operational capabilities and strategic initiatives.

Negative Factors

Negative Profitability

Ongoing profitability challenges with negative margins could hinder long-term financial health and limit reinvestment opportunities.

Shareholder Loan Foreclosure

The foreclosure issue may lead to shareholder instability and potential dilution, affecting investor confidence and stock performance.

Negative Return on Equity

Negative ROE indicates inefficiency in generating returns from equity, posing a challenge for attracting future investment and growth.

Newegg Commerce Business Overview & Revenue Model

Company Description

Newegg Commerce Inc. (NEGG) is a leading global technology-focused e-commerce retailer, specializing in computer hardware, consumer electronics, gaming products, and related accessories. Established in 2001, the company operates a comprehensive online marketplace that caters to both consumers and businesses, providing a vast selection of products from various manufacturers. Newegg's core offerings include computer components, laptops, desktops, gaming gear, and home electronics, along with services such as customer support and tech advice.

How the Company Makes Money

Newegg generates revenue primarily through the sale of products on its e-commerce platform, which includes both direct sales and marketplace transactions where third-party sellers list their products. The company's direct sales involve purchasing inventory at wholesale prices and selling them at retail prices, while marketplace sales allow third-party sellers to reach Newegg's customer base, with Newegg earning a commission on each sale. Additionally, Newegg benefits from advertising revenue through sponsored listings and promotional placements on its website. The company has established partnerships with various technology brands and manufacturers, enhancing its product offerings and driving sales. Seasonal promotions, exclusive deals, and membership programs also contribute to customer retention and revenue growth.

Newegg Commerce Financial Statement Overview

Summary

Newegg Commerce faces financial challenges with negative profitability metrics and moderate leverage. Despite positive trends in revenue growth and free cash flow, the company struggles with profitability, as indicated by negative EBIT and net income. The balance sheet is stable, but negative return on equity and ongoing losses are concerning.

Income Statement

Newegg Commerce's income statement shows a challenging financial position with negative net profit margins and EBIT margins in the TTM period. Despite a slight revenue growth of 3.04% in the TTM, the company has struggled with profitability, as indicated by negative EBIT and net income. The gross profit margin has improved slightly compared to the previous year, but overall profitability remains a concern.

Balance Sheet

The balance sheet indicates moderate leverage with a debt-to-equity ratio of 0.66 in the TTM. The equity ratio is stable, but the return on equity is negative, reflecting ongoing losses. The company's financial stability is moderate, but the negative ROE highlights profitability challenges.

Cash Flow

Newegg's cash flow statement shows significant improvement in free cash flow, with a growth rate of 304.89% in the TTM. The operating cash flow to net income ratio is low, indicating limited cash generation from operations relative to net income. However, the positive free cash flow growth is a positive sign amidst other financial challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.24B	1.50B	1.72B	2.38B	2.11B
Gross Profit	148.16M	120.78M	167.56M	216.63M	325.98M	273.63M
EBITDA	-19.73M	-32.95M	-45.69M	-31.62M	41.88M	38.93M
Net Income	-22.55M	-43.33M	-58.99M	-57.43M	36.26M	30.43M
Balance Sheet
Total Assets	372.74M	407.32M	499.05M	542.10M	626.58M	557.47M
Cash, Cash Equivalents and Short-Term Investments	59.06M	99.74M	102.51M	122.56M	99.99M	156.63M
Total Debt	75.45M	73.00M	90.56M	96.83M	107.23M	56.38M
Total Liabilities	258.64M	301.23M	369.65M	386.87M	444.30M	429.97M
Stockholders Equity	114.10M	106.09M	129.39M	155.22M	182.28M	127.50M
Cash Flow
Free Cash Flow	8.77M	-4.44M	-34.10M	11.29M	-67.13M	78.36M
Operating Cash Flow	12.42M	-821.00K	-3.84M	20.48M	-53.29M	84.51M
Investing Cash Flow	3.04M	2.44M	-14.25M	-3.77M	-13.84M	-5.24M
Financing Cash Flow	-7.74M	-6.05M	1.56M	1.55M	12.74M	-1.73M

Newegg Commerce Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 52.79 is below the 20-day moving average (MA) of 78.37, below the 50-day MA of 61.08, and above the 200-day MA of 32.71, indicating a neutral trend. The MACD of 2.45 indicates Positive momentum. The RSI at 54.96 is Neutral, neither overbought nor oversold. The STOCH value of 67.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEGG.

Newegg Commerce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBAY	70 Outperform	$37.42B	18.02	42.43%	1.40%	4.89%	17.30%
BBY	69 Neutral	$16.74B	26.30	22.49%	4.76%	-0.95%	-48.28%
GPC	68 Neutral	$17.93B	22.20	17.05%	3.23%	3.26%	-25.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NEGG	60 Neutral	$1.51B	―	―	―	―	―
W	57 Neutral	$14.31B	―	―	―	3.35%	42.99%
CHWY	54 Neutral	$14.20B	96.56	34.48%	―	9.04%	-56.79%

Newegg Commerce Corporate Events

Newegg Commerce Projects 2025 Financial Performance and Secures New Credit Agreement

Newegg Commerce, Inc. announced its financial guidance for the second half of 2025, projecting net sales between $1,375.3 million and $1,423.9 million, and a gross merchandise value (GMV) ranging from $1,691.3 million to $1,751.1 million. The company also anticipates a net loss between $15.8 million and $10.4 million, with an adjusted EBITDA expected to be between $13.7 million and $19.1 million. These figures reflect Newegg’s strategic focus on maintaining its market position in the competitive e-commerce sector, particularly in electronics and computer hardware. Additionally, Newegg secured a new credit agreement with East West Bank on October 10, 2025, which provides a revolving credit facility, potentially enhancing its financial flexibility and operational capabilities.