Newegg stock skyrockets 973% YTD due to meme-stock frenzy, sparking a short-squeeze. Former exec Martin Shkreli deems the stock “close to worthless” citing low gross margins. Newegg, founded in 2001, went public in 2021 via SPAC merger, now valued at $4.21 billion. Despite improved metrics, the company remains unprofitable.

Gross margins improve to 11.5%, with average order value and active customers on the rise. Newegg’s recent “FantasTech” sale drives short-term stock gains, but long-term financial trends show revenue and customer decline. Analysts avoid the stock due to declining fundamentals and negative operating metrics over the years. Investors should tread carefully.

The Galkin family’s involvement in Newegg, with 17.1% ownership, contributes to stock optimism. The firm’s financials show a downward trend despite recent sale success. GameStop shares, once a source of wealth for the Galkins, have plummeted. Fresh investment in Newegg is risky due to declining fundamentals and lack of analyst coverage.

Read more at Yahoo Finance: Martin Shkreli Is Fighting the Short Squeeze in Newegg Stock. How Should You Play NEGG Here?