Loophole to a goldmineShares of online consumer tech retailer Newegg Commerce spent Wednesday sinking 15% after being bested by an 11 year old. Yup.
Newegg Commerce has been making waves recently after offering a highly-coveted Nvidia chip, but an 11 year old who found a loophole to win the chip sent prices down 15%. Newegg has been on a wild ride recently, cementing its meme stock status after the availability of options-based trading in early July sent prices racing, but falling back down to earth in the weeks following. The fun began when Newegg listed Nvidia's highly coveted GPUs in its famous Newegg Shuffle, a lottery-like competition which gives customers the option of competing for hard-to-get-hold-of graphics cards. The winners still have to pay for the chips, but it's one of the best chances you have to get your hands on a card without battling with scalpers and bots. The Reddit crowd got involved and the rest, as they say, is history.
Turns out though, that bots and scalpers ain’t got nothing on a savvy 11-year-old though. The kid managed to find a loophole in the system that let him avoid queues and add the coveted Nvidia chip right to his basket. Newegg quickly closed the loophole after it figured out the trick, obvs.
Prices are still on their way down to pre-Reddit rally levels though, closing at $19.85 after reaching a peak of $79.07 on July 7.
Newegg Commerce starts to slipShares of the latest meme darling, Newegg Commerce, fall by 18% to top TradingView’s top loser list as the online consumer tech retailer continues its pullback from a recent 560% bull run, and there’s a lot of short squeeze chatter running around.
Newegg Commerce has been the talk of the online town recently, seeing wild gains and cementing its meme stock status after the availability of options-based trading in early July sent prices racing. Newegg only went public on May 20 this year, after jumping on the SPAC bandwagon, and it's fair to say things have been going well since then – at the peak or its bull run last Wednesday, prices peaked at $79.07, up well over 400% on its listing price.
The fun began when the company hosted a lottery with some highly coveted Nvidia GPU chips, and got rather more heated after options trading became available following its recent IPO, having been in previously short supply. Everyone wants what they can't have, and the scarcity of options contracts meant that more traders wanted them, leading to a price jump from around $17 a share on July 1 to hit $79 a week later.
What goes up must come down though, and after gaining a whopping 560% since June 29, the stock has finally started to pull back. At Monday’s closing price of just under $38, Newegg is already trading more than 50% below its peak, and as volatility ramps up it’s been pegged as a notable short squeeze opportunity.
said Fintel's Wilton Risenhoover.
The goose that laid the golden NeweggNewegg leads TradingView’s top gainers today after including the sold-out and hugely coveted Nvidia GPU chips in its famous product lottery, sending prices jumping 92% in the first two hours of Wednesday trading and closing the day up by over 148%.
The chip famine has been a long one, and the tech nerds are getting hungry. Excitement has been building for a while now over online tech retailer Newegg’s plans to list Nvidia's highly coveted GPUs in its famous Newegg Shuffle, a raffle running from Monday to Friday that gives customers to option of competing for hard-to-get-hold-of graphics cards. The winners still have to pay for the chips, which are priced upwards of $650, but their inclusion has seriously boosted the seller's street cred.
Newegg only went public on May 20 this year, after jumping on the SPAC bandwagon, but things have been going well – at Wednesday’s trading peak of $79.07, shares were up well over 400% on its listing price.
Nvidia GPUs have been going through a severe shortage thanks to a combo of increased gaming during the pandemic and crypto miners sucking up a lot of supply, so getting your hands on one these days really does come down to luck of the draw.