Newegg Commerce (NEGG) AI Stock Analysis

Newegg Commerce

(NASDAQ:NEGG)

Select Model

Rating:48.4Neutral

Price Target:$10.00▲(1.63% Upside)

Action:reiterated

Date:10/03/26

The overall score reflects a business in transition, where a tentative return to profitability and a healthier balance sheet are outweighed by very weak, inconsistent cash flow and a pronounced technical downtrend, while the current valuation offers limited margin of safety given thin earnings and elevated volatility.

Positive Factors

Return to ProfitabilityThe return to positive EBIT and net income indicates that cost discipline, pricing, or product-mix improvements are producing tangible operating benefits. Although earnings remain modest, renewed profitability provides a foundation for reinvestment and could become more durable if management sustains these controls.

Negative Factors

Thin ProfitabilityNewegg’s earnings recovery remains fragile because very limited margins leave little buffer against pricing pressure, weaker demand, or cost increases. Slightly lower revenue compounds that vulnerability, making sustained profit growth dependent on continued execution and favorable product mix.

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

Market Cap: $206.38M
Dividend Yield: ―
Average Volume (3M): 53.28K
Price to Earnings (P/E): 22.0
Beta (1Y): 1.99
Revenue Growth: ―
EPS Growth: ―
Country: US
Employees: 762
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Specialty Retail

Newegg Commerce Business Overview & Revenue Model

Company Description

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer acces...

Newegg Commerce Financial Statement Overview

Summary

Financial performance is mixed: the company has returned to modest profitability and strengthened its balance sheet with lower leverage and rebuilding equity, but revenue remains far below prior peaks and cash generation is weak and volatile, with only minimal positive operating and free cash flow.

Income Statement

55Neutral

Balance Sheet

65Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.38B	1.44B	1.24B	1.50B	1.72B	2.38B
Gross Profit	170.88M	168.46M	120.78M	167.56M	216.63M	325.98M
EBITDA	14.10M	5.72M	-32.95M	-45.69M	-31.62M	41.88M
Net Income	9.33M	-4.88M	-43.33M	-58.99M	-57.43M	36.26M
Balance Sheet
Total Assets	437.64M	468.91M	407.32M	499.05M	542.10M	626.58M
Cash, Cash Equivalents and Short-Term Investments	83.09M	107.80M	99.74M	102.51M	122.56M	99.99M
Total Debt	52.47M	63.25M	73.00M	90.56M	96.83M	107.23M
Total Liabilities	251.30M	308.20M	301.23M	369.65M	386.87M	444.30M
Stockholders Equity	186.34M	160.71M	106.09M	129.39M	155.22M	182.28M
Cash Flow
Free Cash Flow	122.60K	-29.66M	-4.44M	-34.10M	11.29M	-67.13M
Operating Cash Flow	3.34M	-26.97M	-821.00K	-3.84M	20.48M	-53.29M
Investing Cash Flow	-3.14M	105.00K	2.44M	-14.25M	-3.77M	-13.84M
Financing Cash Flow	23.26M	35.58M	-6.05M	1.56M	1.55M	12.74M

Newegg Commerce Technical Analysis

Technical Analysis SentimentNegative

Last Price9.84

Price Trends

50DMA13.28Negative

100DMA14.67Negative

200DMA26.55Negative

Market Momentum

MACD-0.97Negative

RSI34.58Neutral

STOCH27.60Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEGG, the sentiment is Negative. The current price of 9.84 is below the 20-day moving average (MA) of 10.77, below the 50-day MA of 13.28, and below the 200-day MA of 26.55, indicating a bearish trend. The MACD of -0.97 indicates Negative momentum. The RSI at 34.58 is Neutral, neither overbought nor oversold. The STOCH value of 27.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

3 New Risks

1.You may have more difficulty protecting your interests than you would as a shareholder of a U.S. corporation.Q4, 2020

2.Certain types of class or derivative actions generally available under U.S. law may not be available as a result of the fact that we are incorporated in the BVI. As a result, the rights of shareholders may be limited.Q4, 2020

3.Investors may have difficulty enforcing judgments against us, our directors and management.Q4, 2020

Newegg Commerce Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

NEGG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBY	74Outperform	$20.06B	15.89	42.82%	4.00%	1.45%	65.55%
EBAY	71Outperform	$53.40B	26.05	46.11%	1.00%	15.33%	-0.34%
CHWY	66Neutral	$8.56B	32.26	62.13%	―	5.86%	81.66%
W	62Neutral	$15.88B	-47.16	11.48%	―	7.46%	-2.70%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GPC	51Neutral	$16.67B	465.00	0.69%	3.49%	5.29%	-95.50%
NEGG	48Neutral	$206.38M	22.03	5.52%	―	―	―

* Consumer Cyclical Sector Average

Performance Comparison

NEGG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NEGG	Newegg Commerce, Inc.	9.84	-74.61	-88.35%
BBY	Best Buy Co.	95.65	18.25	23.58%
EBAY	Ebay Inc	121.64	39.91	48.84%
GPC	Genuine Parts	120.90	1.62	1.36%
W	Wayfair	115.91	12.61	12.21%
CHWY	Chewy Inc	21.29	-11.63	-35.33%

Newegg Commerce Corporate Events

Newegg Secures $100 Million Credit Facility to Support Growth and Supply-Chain Flexibility

Oct 20, 2026

On October 20, 2026, Newegg Commerce announced it had closed a new $100 million senior credit facility led and arranged by East West Bank, with additional participation from a syndicate of lenders, replacing and expanding credit arrangements that mat...

Newegg Commerce Confirms Christina Ching as Chief Financial Officer

Sep 15, 2026

Newegg Commerce, Inc., a U.S.-based e-commerce retailer specializing in technology products and consumer electronics for consumer and business markets, is headquartered in Diamond Bar, California. The company competes in a crowded online retail space...

Newegg Turns Q2 2026 Profit Amid Supply Constraints and AI Push

Aug 27, 2026

Newegg reported second-quarter 2026 results on August 27, 2026, reflecting pressure from memory and flash supply constraints, persistent inflation and cautious consumer tech spending. Despite an 8.1% decline in net sales to $320.4 million and a 3.9%...

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: Oct 03, 2026

Newegg Commerce AI Stock Analysis