TLDR
- NEGG stock surged 23.1% to $15.31 after launching early FantasTech tech deals with extended price protection.
- Sale runs June 30 to July 6, ahead of the main FantasTech event starting July 7.
- Eligible items get automatic refunds if prices drop later, boosting consumer trust.
- Fiscal 2024 net loss narrowed to $43.3M on revenue of $1.24B, per April 28 results.
- Despite a 91% YTD gain, NEGG still shows multi-year underperformance and negative profitability.
Newegg Commerce, Inc. (NASDAQ: NEGG) saw its stock rise 23.10% to $15.31 as of midday on June 30, as the company kicked off its 4th of July and Canada Day Sale.
This early phase of its annual FantasTech sales event runs through July 6 and includes thousands of tech deals backed by Newegg’s signature FantasTech Price Protection program.
FantasTech Price Protection Expands
For the first time, Newegg is extending FantasTech Price Protection to cover deals made during this early sale window. Shoppers purchasing eligible items marked with the program’s badge will receive automatic refunds if prices drop during the FantasTech Sale, which runs from July 7 to July 13. Refunds are issued automatically by July 22, eliminating the need for customers to track pricing or file claims.
Top deals include a 50% discount on Intel’s Core i5-14600K processor, 35% off an Acer Aspire 5 RTX 2050 laptop, and 44% off the Vantrue dual dash cam. Newegg is also offering deep cuts on gaming PCs, monitors, and components, all aimed at builders and tech enthusiasts. The company promotes the event as one of the year’s biggest value opportunities, especially for early buyers who now benefit from refund protection.
Leadership Commentary and Event Positioning
Newegg’s Director of Merchandise Management, Teresa Chang, said the early access event and return of price protection aim to give customers confidence while shopping the company’s best tech discounts. The promotion serves as a gateway into the larger FantasTech Sale, which will feature even deeper markdowns, including a $599 gaming PC featuring an RTX 5060 GPU.
Financial Performance and Valuation Metrics
While the promotional event boosts short-term sentiment, Newegg’s long-term financials remain a concern. Fiscal year 2024 results, released April 28, showed revenue declining to $1.24 billion from $1.5 billion in 2023. Gross profit also fell to $131.5 million, and although the net loss narrowed to $43.3 million from $59 million, profitability remains elusive.
The company’s current market cap is $233 million, with a price-to-sales ratio of 0.19 and a negative return on equity of -36.8%. Newegg carries $96 million in cash and a debt-to-equity ratio of 68.8%, indicating moderate financial flexibility despite consistent losses.
