Original title: Let's get to know the new favorite of retail investors: New Egg Commerce

Source: Golden Ten Data

The stock prices of Game Stop and AMC, which were former prey for retail investors, have both declined recently, and the rest of the meme stocks have not performed particularly well. However, New Egg Commerce stood out, surging 155% and triggering a meltdown a few minutes after opening on Wednesday, and continued to soar after a brief hiatus.

It is worth mentioning that a week ago, the trading price of this stock was only around $10 per share. However, the company's stock price once soared 55% this Tuesday, reaching its highest level since 2015, and continued to soar over the next two days.

Has this rise in stock prices been watched by retail investors and become a new target?

Let's first take a look at what kind of business NEGG, the new pet of retail investors, does.

NEGG is a technology-focused e-commerce company with a market capitalization of over $20 billion. The company sells computer components, electronics, entertainment, smart home, and gaming products on its online platform. According to some, the company has benefited from the demand for graphics cards mining cryptocurrencies this year.

Perhaps in response to the heavy traffic on its website, as the influx of new shareholders tried to understand the company's actual situation, NEGG issued an announcement on Wednesday, which mainly described the scope of business and operating conditions, and indicated that NEGG now also provides PC assembly services to customers with customized needs. NEGG says:

“The company's current build-to-order (BTO) products utilize NEGG's ENIAC in-house computer assembly services to build and deliver fully assembled computers faster than other competitive products.”

Currently, NEGG has not appeared on the list of the 20 most commented stock quotes on the WSB forum, but zero hedge analysts expect this situation to change soon. According to NEGG's popularity, it will soon be included in this list.

What is more noteworthy is that although the market has not shown interest in NEGG's short positions so far, the change in Wednesday's market seems to have been caused by gamma squeezing (that is, rising stock prices force short sellers to buy back stocks and push up stock prices). The company will face the expiration of $40 bullish options next Friday. Currently, most transactions are very similar to gamma squeezing.