Any soaring stock is destined to fall for the sake of fair correction so today Newegg stock is facing the same fate of rocketing shares of Monday. From $5.17 to $7.40 NEGG could pop within a day. Anyone can predict such a kind of move when the stock grows on no news.
Below $5 it cannot fall this month unless ETF whales start shorting the cheap stock although it has positive EPS. Selling NEGG shares isn’t a wise decision these days while Newegg is the first online store that offers the latest models of electronic goods. For instance, Amazon takes weeks to make the newest device models and parts available after listing. Obviously, Newegg is intentionally focusing on a specific niche where giants like Amazon, eBay, and Walmart are absent. That’s why the company has a good income statement and healthy balance sheet to attract new long-term shareholders.