Tech-focused e-retailer Newegg Commerce’s (NVTA) recent announcement that it would become the first major online retailer to accept Litecoin cryptocurrency through BitPay has certainly impressed investors. But the stock is trading significantly below its 52-week high. While the Reddit-fueled meme craze led to its shares gaining considerably over the past month, now that the euphoria is fading, can the stock sustain its price level in the near term?.Newegg Commerce, Inc. (NEGG) is an online electronic products retail platform offering software, gaming products, computer hardware products, cell phones, and other related accessories. Its shares soared 88.6% over the past three months and 360% over the past year owing to the retail-trader-driven meme-stock blitz. But the stock is currently trading 74.3% below its 52-week high of $79.07, indicating short-term bearishness.
Although NEGG’s recent announcement that it would become the first e-retailer to accept Litecoin (LTC) cryptocurrency on BitPay has garnered significant investor attention, the stock remains highly volatile as the social-media hype has started to fade.
Here is what we think could influence NEGG’s performance in the near term: