Jim Cramer Dubs Newegg A 'Total BGL Game'

CNBC host Jim Cramer has called online consumer electronics retailer Newegg Commerce Inc. NEGG, which has emerged as the newest darling of retail investors, a “total BGL game,” referring to the bagging, gunning and liquidation of stocks.

What Happened: Cramer took to Twitter to ask whether Newegg’s management has the firepower to keep the momentum going or it was just “a good short gone bad.” He noted that Newegg’s market capitalization has surged to more than $20 billion as of Wednesday from just $10 million in June.

It needs to boost its revenue guidance pronto. Or pick up some coverage about its recent DTC model. Otherwise i don't see how it can sustain this level of twelve times sales... What do you think? $NEGG https://t.co/rXSEkSbp3R

— Jim Cramer (@jimcramer) July 8, 2021

The host of CNBC’s “Mad Money” show also wondered whether the Chinese would be as “lackadaisical” as the U.S. Securities and Exchange Commission regarding Newegg, which is a subsidiary of Hangzhou Lianluo Interactive Information Technology Co.

i wonder if the Chinese will be as lackadaisical as our SEC when it comes to things like the BGL of $NEGG

— Jim Cramer (@jimcramer) July 7, 2021

See Also: Newegg Commerce Stock Surges: Technical Levels To Watch

Why It Matters: Shares of Newegg skyrocketed 148% in Wednesday’s regular trading session and also touched a new 52-week high after the company said it is offering professional PC assembly to customers who design their own computers on the Newegg PC Builder.

The trading volume in the company’s shares on Wednesday was 76.19 million, compared to the average daily volume of 1.1 million shares. Newegg's year-to-date returns stand at an impressive 1,528.2%.

The company is attracting the highest interest on Reddit’s r/WallStreetBets forum, which has 10.6 million members and is known for short squeezes.

Price Action: Newegg shares closed 148.4% higher in Wednesday’s regular trading session at $67.57, but declined 13.6% in the after-hours session to $58.40.

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