- Consumer electronics retailer surges more than 100%…
- Gamers get access to new custom build option…
- Newegg beats out competitors for high-demand products…
For the second straight day, Newegg Commerce Inc. (NASDAQ: NEGG) is on an absolute tear.
Shares of the online consumer electronics retailer have more than doubled in value over the last two days. At writing, they were trading more than 100% higher.
Today’s rally seems to have been prompted by news of a build-to-order offering on its custom PC builder.
Custom PC Assembly
Image credit: CreativeCore/Shutterstock.com
Newegg says this new “build-to-order (BTO) offering takes advantage of Newegg’s ENIAC in-house computer assembly service to build and deliver fully assembled computers significantly faster than other competitive BTO offerings.”
Using the custom PC builder, gamers can source parts from Newegg’s vast inventory and then have the completed system delivered in about a week.
The company says its inventory of parts “is a significant advantage compared to traditional BTO services that offer limited component selection and typically take weeks to fulfill custom orders.”
The system is first launching with a beta-phase that Newegg says, “will generate valuable insight and suggestions that will be used to launch the second phase.”
They say the second phase will come with “more perks and options” that will allow customers to further customize and personalize their builds.
Vishal Mane, Newegg’s director of engineering, said, “With a massive component inventory on hand and a team of skilled builders standing by, Newegg is simply the best option for customers who refuse to compromise on quality and who want their expertly built computers delivered more quickly than any other BTO service.”
The company’s PC builder was originally launched in June 2020, allowing anyone to build their custom computer.
Customers who have used the service up until now have purchased the parts and assembled the PC on their own at home.
But Newegg says that has left out a large chunk of customers.
“Not everyone who designs their own computer wants to build it themselves,” said Mane. “For some, it’s a matter of convenience. Our new BTO service gives those customers a simple, fast and affordable option to have the computer of their dreams built to spec and delivered to their home.”
Shuffle Sparks Rally
Today’s surge comes after the stock gained nearly 42% on Tuesday after hard-to-get NVIDIA GeForce RTX graphics cards (GPUs) were included as part of the company’s lottery sale system.
Those GPUs were available on Newegg Shuffle Tuesday, which picks winners to purchase in-demand products that are low in supply.
The graphics cards have been in high demand among both gamers and cryptocurrency miners, disappearing off the market quickly when available.
But the Shuffle offering gave Newegg customers a chance to buy the models at a reasonable price while other big retailers were sold out.
For purchasers of the stock, the news seemed to fuel speculation that Newegg may have an advantage over its competitors in obtaining stock of such items.
SPAC Rocket
Newegg’s shares began trading on the Nasdaq on May 20, following a reverse merger with SPAC Lianluo Smart Limited.
“Becoming a public company is a milestone 20+ years in the making, made possible by the hard work of Newegg’s employees, and the support of our many partners, investors and customers,” said Mr. Anthony Chow, Global CEO of Newegg Commerce, Inc. “As we enter this new phase as a public company, we’re more energized than ever about what the future holds for our company.”
On May 20, the stock closed at $13.24 per share, and in less than two months, it’s trading above $54 per share.
Featured image Editorial credit: OleksandrShnuryk / Shutterstock.com