Newegg slides 35% after 2-day rally sends the online retailer quadrupling on meme-stock euphoria
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- Custom-computer outfitter Newegg tumbled as much as 35% on Thursday as a brief retail-driven blitz began to evaporate.
- The stock had spiked as much as 312% in the two days prior, coinciding with news on Wednesday that the company would begin offering a built-to-order delivery service to the mass market.
- Some voices on Reddit warned that the stock was "cheap paper" that was bound to lose bandwagoners most of their money.
- See more stories on Insider's business page.
Custom computer outfitter Newegg tumbled 35% at intraday lows on Thursday as a brief retail-driven blitz began to evaporate.
The stock surged as much as 312% over the first two trading days of the week amid heightened retail interest. The initial jolt partially coincided with Wednesday news that the company would begin offering a built-to-order delivery service to the mass market. Previously, consumers needed to assemble computers from parts delivered by Newegg.
Newegg has fast become one of the buzziest meme-stock names around, with social-media activity about the company doubling over the past day, according to Stocktwits. However, some voices on Reddit warned that the stock was "cheap paper" that was bound to lose bandwagoners most of their money.
CNBC host Jim Cramer also criticized the stock in a tweet, calling it a "ridiculous game of musical chairs."
Newegg was trading 29% lower, at $47.78, as of 3:45 p.m. in New York.
from Business Insider https://ift.tt/3qWUe4m
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