<div id="readability-page-1"><div><p>The <strong>Newegg Commerce, Inc.</strong> (NASDAQ:NEGG) share price has softened a substantial 29% over the previous 30 days, handing back much of the gains the stock has made lately.    Nonetheless, the last 30 days have barely left a scratch on the stock's annual performance, which is up a whopping 488%.</p><p> Even after such a large drop in price, it's still not a stretch to say that Newegg Commerce's price-to-sales (or &#34;P/S&#34;) ratio of 0.9x right now seems quite &#34;middle-of-the-road&#34; compared to the Specialty Retail industry in the United States, where the median P/S ratio is around 0.5x.  However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.    </p> <p>AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.</p> <p><span> Check out our latest analysis for Newegg Commerce </span></p><figure><img height="650" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/6463012-ps-multiple-vs-industry-1-dark-2/1766571796109?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1640" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/6463012-ps-multiple-vs-industry-1-dark-2/1766571796109"/><figcaption>NasdaqCM:NEGG Price to Sales Ratio vs Industry December 24th 2025</figcaption></figure><h3> How Has Newegg Commerce Performed Recently? </h3><p> For instance, Newegg Commerce's receding revenue in recent times would have to be some food for thought.   Perhaps investors believe the recent revenue performance is enough to keep in line with the industry, which is keeping the P/S from dropping off.  If not, then existing shareholders may be a little nervous about the viability of the share price.    </p><p> Want the full picture on earnings, revenue and cash flow for the company? Then our <strong>free </strong>report on Newegg Commerce will help you shine a light on its historical performance.  </p><h2> Do Revenue Forecasts Match The P/S Ratio?  </h2><p> Newegg Commerce's P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.  </p><p> Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 5.7%.   As a result, revenue from three years ago have also fallen 36% overall.  So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.   </p> <p> In contrast to the company, the rest of the industry is expected to grow by 8.0% over the next year, which really puts the company's recent medium-term revenue decline into perspective. </p><p> In light of this, it's somewhat alarming that Newegg Commerce's P/S sits in line with the majority of other companies.  Apparently many investors in the company are way less bearish than recent times would indicate and aren't willing to let go of their stock right now.  Only the boldest would assume these prices are sustainable as a continuation of recent revenue trends is likely to weigh on the share price eventually.  </p> <h2> What Does Newegg Commerce's P/S Mean For Investors? </h2><p> With its share price dropping off a cliff, the P/S for Newegg Commerce looks to be in line with the rest of the Specialty Retail industry.      Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company. </p><p> Our look at Newegg Commerce revealed its shrinking revenues over the medium-term haven't impacted the P/S as much as we anticipated, given the industry is set to grow.  When we see revenue heading backwards in the context of growing industry forecasts, it'd make sense to expect a possible share price decline on the horizon, sending the moderate P/S lower.  Unless the recent medium-term conditions improve markedly, investors will have a hard time accepting the share price as fair value.    </p><p> We don't want to rain on the parade too much, but we did also find <strong>2 warning signs for Newegg Commerce</strong> that you need to be mindful of.  </p><p> It's important to <strong>make sure you look for a great company, not just the first idea you come across.</strong> So if growing profitability aligns with your idea of a great company, take a peek at this <strong>free</strong> list of interesting companies with strong recent earnings growth (and a low P/E). </p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

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<p>Newegg Commerce, Inc. (NASDAQ:NEGG) has seen its share price drop by 29% over the past 30 days, despite a 488% increase over the past year. The company's price-to-sales (P/S) ratio of 0.9x is higher than the industry median of 0.5x. Recent revenue declines of 5.7% last year and 36% over three years raise concerns about the sustainability of the share price. Investors may need to reconsider the stock's fair value given the industry's expected growth of 8% next year.</p>

Newegg Commerce, Inc.'s (NASDAQ:NEGG) 29% Share Price Plunge Could Signal Some Risk