Original title: let's meet the new favorite of retail investors: New egg Commerce
Source: Jinshi data
Shares of Game stop and AMC, the former prey of retail investors, have both fallen in recent days, and the rest of meme shares have not performed particularly well. However, New egg Commerce stood out, surging 155 per cent and triggering a circuit breaker within minutes of the opening of trading on Wednesday, and continued to soar after a brief suspension.
It is worth mentioning that a week ago, the stock was trading at about $10 a share. But the company's shares soared as much as 55% on Tuesday to their highest level since 2015 and continued to soar over the next two days.
Is such a rise in stock prices targeted by retail investors and become a new target?
Let's take a look at what NEGG, the new favorite of retail investors, does.
NEGG is a technology-focused e-commerce company with a market capitalization of more than $20 billion. The company sells computer components, electronics, entertainment, smart homes and games on its online platform. According to some, the company benefited this year from the demand for graphics cards to mine cryptocurrencies.
Perhaps in response to the heavy traffic on its website, as a large influx of new shareholders tried to understand the actual situation of the company, NEGG issued an announcement on Wednesday, mainly describing the scope of business and operation, and pointed out that NEGG now provides PC assembly services to customers with customized needs. NEGG says:
"the company's BTO products currently use NEGG's ENIAC internal computer assembly service to build and deliver fully assembled computers faster than other competitive products."
NEGG does not yet appear in the list of the 20 most reviewed stocks on the WSB forum, but zero-hedge analysts expect that to change soon, and according to the popularity of NEGG, it will soon be included in the list.
More significantly, while there is no short interest in NEGG yet, Wednesday's move appears to have been caused by a gamma squeeze, which forces short sellers to buy back shares and pushes up the share price. The company faces the expiration of a $40 call option next Friday, and most of the transactions are very similar to gamma squeeze.
