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Why Newegg Stock is Rising?

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Written by Matt Monaco
Updated 8/13/2025, 5:04 pm ET | 6 min

In this article Last trade Aug, 13 5:26 PM

  • NEGG+24.93%
    NEGG - NASDAQNewegg Commerce Inc.
    $92.00+18.36 (+24.93%)
    Volume:  1.81M
    Float:  1.99M
    $73.69Day Low/High$98.45

Newegg Commerce Inc.’s stocks have been trading up by 26.26 percent, indicating strong positive market sentiment.

  • Newegg initiated the Newegg Gamer Community platform, connecting worldwide PC enthusiasts and driving interest in gaming technology.

  • Shareholder Angelica Galkin’s combined $3.3 million investment in Newegg sparked confidence among investors, enhancing stock momentum.

  • Investor Vladimir Galkin’s incremental share purchases, including 416,799 shares for $12.37 million, signal growing confidence in Newegg’s potential.

Candlestick Chart

Live Update At 17:03:31 EST: On Wednesday, August 13, 2025 Newegg Commerce Inc. stock [NASDAQ: NEGG] is trending up by 26.26%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Newegg Commerce Inc. Financial Performance Overview

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Newegg Commerce Inc.’s recent financial data presents an interesting narrative, blending volatility with growth potential. At the end of 2024, the company announced a revenue figure hovering around $1.24 billion. The bulk of this revenue is drawn from Newegg’s unique market position, specializing in tech and gaming merchandise, further solidifying its brand among enthusiasts and dedicated gamers.

The financial indicators paint a mixed picture. On one hand, the enterprise value stands at a significant $396 million, but the debt-to-equity ratios raise eyebrows. At a staggering leverage of 3.8 and long-term debt aligned at 33%, it implies that Newegg is operating with a relatively high level of borrowed funds compared to its own equity. Meanwhile, the market’s acknowledgment of this risk is visible in the negative price/earnings ratio, suggesting the market is cautious about Newegg’s profitability prospects.

Nevertheless, the recent acquisition activities by major stakeholders like Vladimir Galkin indicate a substantial internal confidence in future growth. Such significant investments often hint at anticipated positive turns in company performance and strategy.

On the operational front, Newegg’s recent launch of its Gamer Community platform is another strategic movement poised to expand its influence in the gaming ecosystem. This initiative not only showcases its venture into content-driven platforms but also taps into a dedicated demographic of tech-savvy consumers.

From a cash flow perspective, the $96.25 million in cash and equivalents provides a substantial cushion for current liabilities, which nears $245 million. However, one must consider the long-term implication of Newegg’s capital lease obligations towering over $53 million that require careful financial structuring moving forward.

Impact of Recent News on Newegg’s Stock

With the current 9% uptick in NEGG stock, observers eye two major catalysts: the launch of the Newegg Gamer Community and a series of high-volume share purchases by the Galkins. These reflect a dual approach—expanding market engagement while exuding insider confidence.

Vladimir Galkin’s Influence: Galkin’s consensus purchase patterns act as implicit market endorsements. Such share acquisitions, especially the likes of his most recent splurge exceeding $12 million, act as neon signs of anticipated growth, thrilling fellow investors and boosting morale across Newegg’s stockholder base.

Newegg Gamer Community: The launch represents a critical step forward in Newegg’s long-term strategy and engages targeted audiences. Connecting daily users there stems from envisioning communities as key retention and engagement hubs, potentially leading to stable revenue streams and increased lifetime customer value.

Market Reaction: Each investment round, notably the $3.3 million infusion from Angelica Galkin, sent ripples of interest through the market. These savvy investors underpin Newegg’s current market trajectory, fostering confidence despite the challenging backdrop of tougher financial measures facing the firm.

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Conclusion

Newegg’s recent ventures and strategic decisions are undeniably steering the firm into different realms of growth. As insiders like the Galkins throw their weight behind Newegg’s future, it is, without a doubt, reshaping trader expectations. While questions around its financial health loom, the consistent positive market reactions following key announcements suggest a rejuvenated trader belief in Newegg’s journey. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This mindset underscores the careful trading approaches being utilized as Newegg transcends its initial roots into a tech hub, resonating with the evolving demand in the tech ecosystem, and observers will closely watch how these movements translate into long-term trading gains.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Matt Monaco

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
He is a diligent trader and teacher in his To The Moon Report blogs and Small Cap Rockets strategy webinars. He shows up every day, and expects his students to as well. Matt is fond of trading sketchy, volatile OTC stocks with profit potential. His favorite patterns are panic dip buys and breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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