Newegg Commerce Shares Drop 14% to $47.55 After Chairman Detention
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
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Newegg Commerce down 14% at $47.55 after board chairman detention
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Analyst Views on NEGG
About NEGG
Newegg Commerce, Inc. is a global online retailer for PC hardware, consumer electronics, gaming peripherals, home appliances, automotive and lifestyle technology. The Company also serves businesses' e-commerce needs with marketing, supply chain, and technical solutions in a single platform. It has developed an online marketplace that delivers value to consumers, brands and sellers in the technology products sector. Additionally, the Company's platforms offer a comprehensive suite of e-commerce solutions, including product listing, fulfillment, marketing, customer service and other value-added tools and services. Its core customers include both its business-to-consumer (B2C) customers and its business-to-business (B2B) customers. The Company's B2C Platforms include Newegg.com, Newegg.ca, Newegg Global and Mobile apps. NeweggBusiness.com, its B2B e-commerce platform, offers a full range of information technology, office and industrial products and solutions for various customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Newegg Under Investigation, Shares Plunge 17.7%
- Legal Investigation Launched: The Schall Law Firm is investigating Newegg for potential violations of securities laws, which could undermine investor confidence and the company's reputation.
- Executive Detained: On January 21, 2026, Newegg disclosed that its chairman and controlling shareholder, He Zhitao, has been detained and is under investigation, raising concerns about corporate governance.
- Stock Price Plummets: Following the announcement, Newegg's shares fell by 17.7% on the same day, reflecting investor panic over uncertainty regarding the company's future and potential losses.
- Investor Rights Advocacy: The Schall Law Firm is urging affected shareholders to participate in the lawsuit, highlighting the potential legal liabilities stemming from the company's failure to disclose critical information.
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Newegg Commerce, Inc. Under Investigation, Stock Plummets 17.7%
- Securities Fraud Investigation: The Portnoy Law Firm has initiated an investigation into Newegg, potentially filing a class action on behalf of investors to recover losses from corporate wrongdoing, highlighting a commitment to investor rights.
- Shareholder Under Investigation: On January 21, 2026, Newegg disclosed that its controlling shareholder and chairman, He Zhitao, is under investigation and has been detained for personal matters, leading to a decline in market confidence regarding corporate governance and affecting investor sentiment.
- Significant Stock Drop: Following the news, Newegg's stock price plummeted by $9.79, or 17.7%, closing at $45.53 per share, resulting in substantial financial losses for investors and raising concerns about the company's stability.
- Legal Support Offered: The Portnoy Law Firm is providing complimentary case evaluations and encouraging affected investors to contact attorneys to discuss their legal rights, demonstrating the firm's commitment to helping investors recover their losses.
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