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Summary
- The California-based online electronics retailer’s stock (NASDAQ:NEGG) more than doubled on Wednesday’s trading.
- Newegg Commerce said it started a build-to-order offering, which provides professional assembly service of personal computers.
- Newegg Commerce’s stock gained 184 percent during this month.
Newegg Commerce Inc. (NASDAQ:NEGG) saw its stock price more than doubled on Wednesday’s trading after the company said it started offering professional personal computer assembly service.
The California-based online electronics retailer saw its stock price rally up to US$70 on July 7. Newegg currently has a market capitalization of around US$23 billion.
The stock soared approximately184 percent this month. The shares traded as low as US$2.80 during the last 52 weeks.
As of 12:04 pm ET, Newegg stock was trading at US$55.09, up 102.54 percent.
What does Newegg Commerce Inc. do?
Newegg Commerce Inc. was formed after Chinese medical products and medical components company Lianluo Smart merged with privately-held Newegg Inc.
Both the companies completed the merger on May 19, 2021, following which Lianluo Smart was renamed as Newegg Commerce and its class A common shares that were traded on NASDAQ under the symbol "LLIT" started trading under the new ticker NEGG.
Newegg's shareholders own around 99.02 percent stake in the California-based combined company while Lianluo Smart shareholders got 0.98 percent stake.
After the merger, the combined company exited Lianluo’s legacy medical device business.
Newegg.com provides direct sales and marketplace for consumer electronics, entertainment, smart home, and gaming products in North America.
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Source: Pixabay
Newegg’s build-to-order offering
On July 7, 2021, Newegg said it has started a build-to-order offering, which provides professional assembly service for personal computers.
This offering enables customers to buy the parts for their personal computers and get it built by skilled technicians. Newegg is targeting gamers with this offering, who are looking to maximize their system’s gaming performance.
Newegg plans to leverage its in-house computer assembly service ENIAC to assemble and deliver the computers much faster than build-to-order offerings.
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Newegg’s personal computer configurator Newegg PC Builder, which was introduced in June 2020, helps customers design their computers.
The company noted that it will provide more options such as laser engravings to enhance customization in the second phase of the offering.
Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.
