In recent weeks, the rapid increases in short-squeeze stocks have gotten investors excited again. After all, speculation can be fun, especially when you’re winning. In particular, fans of Newegg (NASDAQ:NEGG) are likely feeling lucky today. Right now, NEGG stock is up more than 25% on very heavy volume.
Newegg has been a popular short-squeeze target for retail investors in the past. The company’s e-commerce business model promises potentially sky-high future growth. What’s not to like about an up-and-coming e-commerce player in this environment, right?
Well, a variety of headwinds have hampered Newegg lately. The company has ties to China, which has been beaten up hard in the market over the past year. Furthermore, rising interest rates have the potential to devalue future earnings for high-growth names like NEGG. Plus, sentiment toward speculative equities has decreased considerably from last year’s peak.
Still, there’s a reason enthusiasm is returning to NEGG stock. Let’s dive into what’s driving shares higher today.
The post Why Is Newegg (NEGG) Stock Up Today? originally appeared at InvestorPlace.