Sometimes, a major stock market move comes out of nowhere. While many may turn to online electronics retailer Newegg (NASDAQ:NEGG) for its selection of computers and peripherals, investors turned to it on Friday for gains in their portfolios. Newegg closed up over 40% on Friday, but why? The odd answer here is that no one is particularly sure. Trading volumes were enormous – around 14,000% higher than normal. A typical day sees just over 356,000 shares of Newegg traded, but Friday saw over 53 million. Reports also noted unusually elevated short interest in the company.
Yet, that’s about the whole story for Newegg, as the only other news about the company was the arrival of the new Intel (NASDAQ:INTC) Core i9-13900KS processor. The new processor was only recently announced, but Newegg managed to lay hands on them to sell anyway. There was also an unexpected report out from Market Growth Reports that noted consumer electronics stores were in line to see massive expansion through 2029.
It’s possible, therefore, that investors may be looking for a cheap way to play a massive potential gain. With Newegg shares still in the low single digits even after this unexpected run-up, it would seem to qualify as a bargain play in consumer electronics sales.
The last five days of trading show a stock that’s relatively quiet until a sudden massive surge. Is Newegg the latest “meme stock” to get a push from Reddit investors? Are people that interested in the newest Intel Core i9 chip? This might be one to keep watching all the same.
