Newegg Commerce, Inc. (NEGG) AI Stock Analysis
NEGG AI stock analysis summary
AI ResearchNewegg Commerce, Inc. is an e-retailer specializing in electronics, computer hardware, and tech accessories across North America. The company generated $1.38B in trailing twelve month revenue with an operating margin of 0.4%, while its 5-year revenue CAGR was -7.3% through FY2025. Over the past year, NEGG shares declined 76.5%, underperforming the broader market.
- Market cap
- $228.6M
- Revenue (TTM)
- $1.38B
- P/E
- 24.2x
- 1Y return
- -76.5% S&P 500 16.8%
- Avg. target
- $3.00 -72.5% vs last close
Bull case
- Annual revenue increased 16.9% in FY2025 to reach $1.44B after three consecutive years of top-line declines.
- The company maintains a positive net cash position of $30.6M with $83.1M in cash and short-term investments as of June 30, 2026.
- Newegg generated positive trailing twelve month net income with an EPS of $0.45 and a profit margin of 0.7%.
Bear case
- Free cash flow remained negative in FY2025 at -$29.7M, following negative operating cash flow of -$27.0M.
- In the latest quarter ending June 30, 2026, quarterly revenue fell 8.1% year-over-year while quarterly earnings declined 40.6%.
- The analyst mean price target of $3.00 implies a 72.5% drop from the closing price of $10.90.
What Newegg Commerce does
Newegg Commerce, Inc. operates as an e-retailer specializing in electronics across North America. Headquartered in City of Industry, California, the company sells desktops, laptops, gaming peripherals, and accessories for consumer and business markets. Its catalog features core components including CPUs, graphic cards, motherboards, and storage devices, alongside consumer electronics, gaming consoles, smart home devices, and office supplies. It operates B2C platforms including Newegg.com, Newegg.ca, and Newegg Global, along with mobile applications. In addition, its B2B platform, NeweggBusiness.com, provides hardware and customized procurement solutions to corporate and institutional clients.
Growth and profitability
Revenue contracted from $2.38B in FY2021 to $1.24B in FY2024, before increasing 16.9% to $1.44B in FY2025. Operating margins were negative across several years, registering -2.9% in FY2022, -4.7% in FY2023, and -4.2% in FY2024, before improving to -0.7% in FY2025. Annual net losses narrowed from -$59.0M in FY2023 to -$4.9M in FY2025. For the trailing twelve months ending June 30, 2026, revenue stood at $1.38B with a net profit margin of 0.7% and EPS of $0.45. In the latest quarter ending June 30, 2026, quarterly revenue fell 8.1% year-over-year, while quarterly earnings fell 40.6% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Newegg held $83.1M in cash and short-term investments against $52.5M in total debt, yielding a net cash position of $30.6M. The company reported shareholders' equity of $186.3M, total assets of $437.6M, a current ratio of 1.55, and a debt-to-equity ratio of 0.28. In FY2025, operating cash flow was -$27.0M and free cash flow was -$29.7M, alongside $2.7M in capital expenditures. Share count increased 17.8% over five years.
Valuation and performance
At a closing price of $10.90 on October 16, 2026, Newegg had a market capitalization of $228.6M and an enterprise value of $271.5M. The stock trades at a trailing P/E of 24.2x and an EV/EBITDA of 14.5x, above the median of its US-listed Consumer Cyclical peers of 18.0x and 11.1x, respectively. However, its price-to-sales ratio of 0.2x sits below the peer median of 0.7x. Over the past year, NEGG fell 76.5%, compared to a 16.8% gain for the S&P 500.
What analysts expect
The analyst mean price target for Newegg stands at $3.00, representing a 72.5% decline from its last close of $10.90 on October 16, 2026. The company recorded 0 EPS beats over the last 4 quarters. The stock also carries a high beta of 3.54, reflecting elevated price volatility compared to the broader market, while insider ownership stands at 95.2% and institutional ownership is 0.5%.
Key risks and what to watch
- A 5-year revenue CAGR of -7.3% highlights persistent multi-year headwinds in consumer electronics demand.
- The stock has a high beta of 3.54 and trades 61.9% below its 200-day moving average, signaling substantial price volatility.
- High insider concentration of 95.2% and a short interest of 21.3% of the float expose the stock to limited public liquidity and potential market swings.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this NEGG AI stock analysis
This page is an AI-written research summary of Newegg Commerce, Inc. (NEGG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: NEGG income statement, NEGG balance sheet, NEGG key metrics, NEGG chart. See the NEGG stock overview for the latest quote and news.
NEGG AI stock analysis FAQ
What is Newegg's current valuation?
As of October 16, 2026, Newegg has a market capitalization of $228.6M and an enterprise value of $271.5M. It trades at a trailing P/E of 24.2x and a price-to-sales ratio of 0.2x.
Does Newegg pay a dividend?
No, Newegg does not currently pay a dividend to shareholders.
What are analysts forecasting for NEGG stock?
The mean price target from analysts is $3.00, which sits 72.5% below the closing price of $10.90 on October 16, 2026. The company posted 0 EPS beats over the trailing 4 quarters.
How strong is Newegg's balance sheet?
As of June 30, 2026, Newegg held $83.1M in cash and short-term investments against $52.5M in debt, resulting in net cash of $30.6M. Its current ratio is 1.55 and debt-to-equity ratio is 0.28.