Newegg Files $175M IPO

Daily Tech ^ | September 28, 2009 3:50 PM | Michael Barkoviak

[Ernest_at_the_Beach]

Newegg finally goes public, with financial analysts expecting big things

Online retailer Newegg today announced plans to go public, filing for a $175 million IPO, according to an SEC filing.

Newegg is best known as a technology e-tailer, but has expanded of late to include other consumer electronics.  Since launching in 2001, the company has been profitable every year, with $2.1 billion in sales in 2008.  In 2007, the company saw $1.9 billion in sales, with the number expected to increase as Newegg expands its business.

The company has seen dramatic success after making changes to support small- and medium-sized businesses in the United States.  Newegg also has its sights outside the United States, with China expected to be an important step in the company's continued expansion.  Furthermore, Canada also is expected to be a big market for Newegg, with many Canadians long requesting to be able to make purchases from the site.

[domenad]

Rough time for an IPO, but maybe that’s a good cue to buy.

[Ernest_at_the_Beach]

fyi

[bt-99]

They get 50% of my business technology(hardware) purchases. I am in Valley Forge Pa and almost every thing I order from them gets delivered next day with no extra charges and they have un believable prices.
I wish I could get in on this on.

[Moose4]

An extremely good company, the best of the mail-order computer retailers IMO. I’ve built four computers with components from Newegg and had zero problems. They have good stock, they ship on time, they have generous return policies, and their prices are good. Years ago, they had a reputation as the best place for hobbyists to buy components because they had an excellent selection and good prices, but they wouldn’t hold your hand or make many suggestions if you called them. If you knew what you were doing, they were great; if not, best to call somebody like Dell or Gateway and let them put it together for you.

}:-)4

[FlJoePa]

Newegg and Tiger Direct are the two best out there....by a large margin, imo.

[Zathras]

I like the company.

[MissNomer]

Perhaps the toughest question we should ask ourselves before investing is, do they have a sock puppet as a mascot?

[Noumenon]

Over the last 6 years or so, I’ve spent thousands and thousands of dollars with this outfit. They get the job done and for a reasonable price. I seldom have to look elsewhere for conventional PC stuff and small business networking. No complaints.

[Notary Sojac]

In my experience there is no better place to go when evaluating a possible hardware purchase than the user reviews on Newegg.

[throwback]

Never used Newegg till I built a new PC last spring. Their web site/service was ideal for finding exactly what I needed. The amount of information on the products and the previous customer comments were invaluable in selecting the parts. That was my first complete build. Took some research and about a month, but the thing came off flawlessly with no wasted motion or money. Probably saved about $1000 vs. buying a complete OEM rig that would even have come close. Maybe there are better vendors out there, but I'm not aware of one.

[Zathras]

LOL!

[Paradox]

They get about 75% of my computer hardware business. One thing that is really great is the massive consumer review database. Some of those reviews are really informative, about what hardware combo's work best, and at what settings, etc.

They sometimes have some crazy good deals, although usually with rebates, but all my rebates (but one, still working on it) have come through.

[Spaulding]

Newegg is a very well-run company, but they have a problem called “California”. As long as they are based in California, add ten percent to any purchase from within California, their largest customer-state. California, in its desperation, will work with Obama to render profit an impossible dream. I've purchased a great many components from Newegg, but have begun to move my business to Amazon, which ships free with no tax. It's sad, but I must pass on a $100 surcharge to my clients on a typical system. I could do that, but just as I will never buy a product from GM or Chrysler, which I'm forced to support, I won't feed the pigs in California - and I live here - because they won't change until compelled.

Newegg's moving to China and Canada certainly makes sense, but if I were running the company I would be looking to Nevada, Texas, or ... where the cost of doing business is lower, and the penalty to the largest block of customers is not ten percent. Competing in a commodity business with a ten percent penalty is probably futile, and Newegg must know this. I wouldn't bet on their growth if they stay in Kalifornia. It is not about productivitiy. Bureaucrats will be paid first!

[SunkenCiv]

I’ve often wondered, is NewEgg the successor to the old Egghead retail chain?

[Ernest_at_the_Beach]

I am not aware of any connection,...but the Newegg name is curious .....