@@skyvenrazgriz8226They didn't, though. Short term profits and long term losses are NOT what investors want. Companies used to sell on value in the market, not quarterly earnings. Fundamentals mattered most.
It's more about short term gains vs. long term strategy. Especially when it comes to private equity firms who want to sell off the company they just bought as soon as possible, after "turning it around". Shareholder value includes stability as well as a decent return. But when new management takes over, they almost always focus on the short term, and that means penny pinching, killing the culture and driving off the firm's more valuable people.
I would say almost every major ceo ascribes to "maximizing shareholder value" (they do work for the shareholders). Therefore, whenever a company does poorly, we can apply this narrative too them - as almost all companies are doing it. If you pick any of the "very good" companies, (AAPL, MSFT, DHR, etc.) they are also doing this - just more successfully.
That's why it's better to stay private and go for sustainable organic growth instead of the drive for unsustainable profit and margins. Getting an influx of money by going to the open markets will lead to maximizing shareholder value over customer value, greed over selflessness. That being said, because Microcenter is not a profit-at-all-costs kinda company, many of us won't see a Microcenter in our neighborhood anytime soon, and that's ok.
I remember buying a hard drive back in 2012 which was DOE (defective on arrival). I filed for a refund and it was denied saying that I damaged it. Well, that was the last time I give them my money. F 'em!
Former employee here: part of their failure is due to selling their company to a Chinese investor. They constantly put pressure to recoup their investment cost and go public as soon as possible at the detriment of the company. Hired incompetent C level execs and paid such low salaries that the good employees would leave shortly after. It was a very toxic work environment and everyone either hated their managers or kissed ass to not get fired. I’m glad that place is going under.
Interesting that he never mentioned anything about new ownership in the video. Do you think with all the research that that would have came across at some point.
@@PLANETWATERMELON it wasn't "new". This happened maybe almost 10 years ago now(?). They've been gradually on the decline since. It is just now the cracks are REALLY starting to come to the surface on a large scale. Fun fact, Newegg is probably about 90%+ Asian/Chinese internally. The people they hired during the Gamer's Nexus interview were there no more than a year before that and they were specifically hired to look "American" and be the face of the company. But all the actual people with power/pull are Asian.
@@ncodexg yup. I heard of this change around 8 years ago and completely stopped buy from new egg once I learned of this and sure enough, it was the right choice to make. Its a pity, I sue to buy most of my computer hardware from/between them and microcenter.
I know it’s for the clicks but putting Linus on the thumbnail when he basically did nothing is super disrespectful to Steve and other RUclipsrs that actually did all the work…
It was done in bad faith because most people already saw Steve's video and would think 'I already know about that' vs 'I didn't hear what happened with linus'
I've spent tens of thousands with them getting parts for work. Around the time they added third-party sellers, I also noticed that newegg themselves rarely had the parts I needed, and if they did, it was not the best deal I could find. Not purchased from them for some time.
Yes when I went on there to buy parts for a new pc after it's been a few years, the third parties and the website layout was horrible. Ruined the website. I miss the old new egg.
I recently ordered half my PC from Newegg and half from Amazon. On Amazon I accidently ordered 3rd party and cancelled the order. Had no issues with Newegg. I did watch gamers nexus videos but ordered anyways. I did return an expensive item to Newegg without issue. This was about two months ago.
Same story as old as time. Once you go corporate, you lose the things that fans liked. Everyone who cares about the company gets replaced by people who only care about balance sheets and accounting. And then you lose the number one reason why people used your services/company in the first place. Thanks Jack Welch, for making "maximize share holder value" the plague of corporate governance.
@@rebeltheharem7028 And Ronald Reagan. Don't forget what one of the greatest anti-workers have done for blind belief that companies were so good-hearted. Ever since "trickle down economics" philosophies were introduced, they NEVER got removed again. Funny how "solutions" that "inadvertently" hoard wealth in the hands of few are so hard to be corrected.
@@WildFungus yeah, I bought 2 segate drives. One didn't work at all. I thought it was defective. I then had to pay $20 plus shipping and handling to send it back. They called the $20 dollar fee a restocking fee. I was like why are you restocking it when it's defective? This was back in 2015. There were articles that seagate switched to a new factory and their defective rates increased. I bought another one and then got fed up and did an RMA with seagate they said they will send a new one. They send me a refurbished one. I stopped buying from seagate and just bought from WD. I am going to build new computers next year and for sure will not use newegg.
I work at an Amazon facility and they had a supplier sell them over 10k worth of AMD processors that were pre gift wrapped for Christmas. Every box had all the manuals and everything inside except the processors. Sometimes suppliers are scammers and since everything has a factory seal you don’t know till the complaints start rolling in.
Yeah, I thought I was clicking on a LTT video at first. Still interesting, but putting someone else in your thumbnail is misleading and super annoying. 😑😠
Private company - You work for the customer Public company - You work for the shareholder The ONLY way the latter works is if, somehow, the shareholder IS the customer. But shareholders tend to have lots of wealth. Most Americans don't.
I disagree. Private = you work for the owner 'Public' (stock exchange)=you work for the most successful shark among the shareholders. This corporate culture that many US citizens seem to love so much has hidden all sorts of crimes and deeds to maximize profits for a handful, leaving good employees in despair and peril (toxic workplace and loss/mispayment of wages) and customers - who also happen to be in most part employees in other companies that do the same - powerless to solve problems with malfunctioning products/services.
I find it odd how literally nowhere in the video that the company was bought out by a Chinese investment firm and that was precisely when things started to tumble.
I used NewEgg to build a PC back in 2015. It was absolutely amazing, really. Now, I didn't buy my parts from NewEgg... I just used its PC builder and bought the parts from whoever had them cheaper at the time. It's still my most reliable PC to date, barring a single failed SSD.
Same exact thing with me just haven’t finished the build yet but surprisingly they had great prices fine shipping times and excepted PayPal unlike Amazon
Same! I bought all my parts from them in 2015, fast forward to last December I only bought my CPU, GPU and MOBO from them. I didn't know I was taking such a huge risk. I thought they straightened themselves out since Steve went there and called them out.
@@E-raticWarrior Funny, I also bought most of my current main PC from them at about the same time, and also with no idea they'd been having so much trouble. Just assumed they were still the same Newegg I've trusted for as long as I've built my own PCs. Anyway, all my parts were fine and are powering the PC I'm using right now to post this. Guess I got lucky? I also just remembered: I even bought a good chunk of parts around May of this year for a build for a family member, also without issue. Really hoping this means they've straightened things out after all.
Before the video started I was guessing it was a case of "they got greedy and stopped giving a shit about customer service" while knowing nothing about the company or background story. Turns out I was correct.
I used to buy from Newegg but it was under a different name. I don't remember what it was. They had a bad rep for bad customer service. Apparently they can't get away from giving bad service. Now it looks like it's more than bad service. It's outright scamming.
When Newegg had the lowest prices and high quality service, they were losing money (for the first 18 years of their existence!) Then when they provided less service, they finally started turning a profit.
I received a bad mobo, and video card, and the “damaged by customer” BS happened to me, I spent my savings to buy that computer only to have to save up again to complete it.
They sent me the wrong cpu. Ordered an i9 13900k with a motherboard combo. They sent me an i7 with it. I requested to return it unopened. They denied the return on arrival saying it was damaged and I had to buy an i9. Went 900 out of pocket.
I bought a Logitech G502 mouse. Got a random aliexpress special "G502" mouse. Customer support wanted me to confirm with Logitech that it was indeed a counterfeit. They confirmed it was. Then they had the gall to tell me Logitech's customer rep didn't confirm it was counterfeit. Then they told me to send back the counterfeit item (which I refuse to do since I know they'll just send it to someone else AND BECAUSE I DON'T HAVE TO BY LAW). And they were charging me a restocking fee. Posted on Reddit and asked for their legal team to the customer service rep, I think I did send a nice email reminding them of applicable law. Did get a not moron customer retention rep, but I never bought from Newegg since. Few weeks later, there was a mass email that the specific seller was selling counterfeit goods and my (already refunded by now) item would be refunded. Never took their 50$ offer to keep me as a customer.
This scenario happens over, and over because retailers don’t understand they are in the customer service business. When you don’t design, or build products, the only thing they have control over is the customer experience.
It's a shame. They had really did a good job of rebuilding themselves after they renamed themselves to "NewEgg". I've bought from them plenty of times since they were around. Even when they still had their original name. I last built another PC back in 2021. Everything has been running fine.
I only half agree. Like obviously if newegg didn't pull all their shady crap, they would've been fine, but if the youtubers didn't come out and make videos about it, it likely would've flown under the radar. After all, I doubt most people are going out and constantly checking whether or not a company has suddenly become super shady, so it's awareness from those big youtubers that helps spread the word. Like I apparently either missed or forgot about the newegg stuff so I didn't realize until this video that I should avoid them. That's the power that being a youtuber with an audience comes with and why I think it's fair to say youtubers were a major factor in the decline of the company.
@@XdivineExp I'm a day trader that's balls deep in tech sector, NewEgg was already silently dying. The RUclipsrs exposing NewEgg were only "accelerating" the process, the company had negative income since 2021. Domestically they can't compete against Micro Center and Amazon both in price, quality and delivery speed. Internationally they can't compete against anyone at all because pretty much everything on their website have anywhere between 50-100x every other competitors' product price, delivery fee, taxes that did no made sense. To highlight how bad NewEgg is, including tax and delivery fee, a 4090 cost almost between $500-$1500(dependent on country) extra compared to buying it off Amazon for international delivery outside of North America. Most ecommerce sites turn to globalization when domestic sales start to falter, they're fail at both fronts. Chapter 11 is inevitable even if RUclipsrs did not make videos about them. People already stopped recommending NewEgg since 2022 when their price gouging did not stop despite other competitors already normalizing in prices.
They weren't actually related, but I remember buying things at Egghead in 2001 and they shut down not long after that. I didn't know about Newegg yet, so when I found out they existed, I immediately assumed Egghead had rebranded or reopened or something. I sometimes feel like I'm the only person who went through this.
I used newegg as a young man in the early 2000's. There was nothing like it. The prices, the help with specifications. A lot of young kids don't realize back then the current generation of computers could have 1 of like 5 different kinds of RAM. Computer parts have been way more universalized since then, 1 kind of RAM, PCI Express, and then just matching the cpu socket to the board. It used to be way more complicated.
No kidding - I was able to use Newegg to source upgrade parts for an old Compaq PC that kept it running a lot longer than it should have. I visited the site more recently and it felt so off, it was giving AliExpress vibes.
Lmao….less complicated? I call bs….im willing to bet there is a clear anti consumer reason for every company nowadays naming ejhdhdjdkjejebbddbjdjeu287748ultra for other part……
The laughable part of the Gamer's Nexus situation is that they left the RMA sticker on the board from when they sent the board for repair from the manufacturer.
Which just goes to show they're too lazy to even try to cover up their own corruption. It's like WalMart, where TWICE I've bought electronics sold as NEW that proved to be used when I opened them up (like an answering machine that already had messages on it). I don't buy electronics from them now (not that I shop there much at all)
The suits are not any different from a normal person, and if they are from a public company they are just nepotists, they are liquidators, not people with technical knowledge.
I'll bet if we dug deeper, the suits is where the problem started. The ones who started the company did alright, but at some point they had to hire some suits to run it.
Newegg ruined itself by de-prioritizing customer service, and firing the employees who had the balls to speak up. I worked in their reverse logistics department and boy do I have some stories.
10:02 “It’s hard to blame leadership because the turnover is so high”. You sound like the only work experience you have is being a youtuber. High turnovers are most definitely the fault of leadership/management, due to their actions or lack of.
Well, when the turnover is _among_ the leadership... It's still the leadership's fault, you just need to figure out which version of it. Steve mentioned a few months after this happened that none of the executives whom he interviewed still worked at Newegg.
Once famous for its exceptional customer service and product quality, it's disappointing to witness its downfall largely due to management discrepancies and disregard for customer concerns.
I bought a laptop in the pandemic from Newegg not knowing all the problems they were having in 2022. My laptop was listed new but obviously I couldn't beat the price and I knew Newegg was a reputable source amongst pc users.... or so I thought. I received my laptop and inspecting and general cleaning the day it came I noticed that one of the screws holding the bottom panel was stripped out. So I did some digging and opened the case. To my surprise the laptop was not new and it even had non oem mismatched ram and everything. To no one's surprise from this video. I was ghosted after 4 days of back and forth with support. 4 months later the motherboard grenaded itself rendering the keyboard and mouse pad useless. Non detectable battery charge rendering the laptop mobility useless. And more, but overall I'm not giving those people my money ever again. This may seem harsh but I'm glad they go under. I have no idea how things like this is not illegal and would warrant investigation from officials seeing it as its an American based company. I hope micro center keep growing as they do because never ever have I had a bad experience with them.
About legality of such things - did you report your purchase to any consumer protection agency? Cause I hear a lot about people getting by businesses, but people actually properly reporting those scumbags seems rare.
@FreaKill666 well is something that I just never thought of at that time you know. Is been 4 years now so I doubt I would have a case. Plus I was younger back then and didn't really care for such things. Now I have a tighter grip in my financials and I'm more educated on consumer laws and how scummy business can be. Guess you got to get burned atleast once to know if the stove is hot or not
Knowing what I know now if I was in the spot the second they stop responding I’m going straight to the credit card agency to dispute. I had to do this with Adobe because they practically refused to cancel my subscription that I at least thought I cancelled 4 times already at that point. We’re talking like 4-5 pages of “are you sure’s” that were made to appear like you already successfully cancelled. I got on to a live chat with their support and they just stopped responding to me. Provided the chat to the bank for the dispute and got my money back lol
@IAmCjcj11 I'm going through this rn with planet fitness. I just had to escalate with corporate to get 3 months of refund. I have one of their workers on video telling me that my subscription was cancelled and they kept charging me. This time though if corporate doesn't answer me I will have to communicate with my bank. I moved state lines there isn't a PF near me for atleast 4hrs away. But yeah wish I knew so many things when I was younger I could've probably had my own house by now
I ordered a galaxy s22 ultra from Amazon and received a cheap fake clone. It's very scary when you believe you got scammed and lost thousands of dollars. Report. Always report.
uh oh, i just bought a graphics card from newegg last week but wasnt planning on opening it till i get all my pc parts through out the year, should i open it to make sure its good? 😳😳😳
They lost me a LONG time ago when they locked my account (because I ordered parts as a gift for a friend), informed me by email about it, left a number for me to call for assistance. I called the number and was told that they could not help me. WTF did they even bother giving me a number then?!
One other issue that hurt Newegg is the fact they were happy to sell exploding power supplies as parts of bundles as well as individually when they knew they were faulty.
So, it really isn't "NewEgg". The company was sold, the new owners owned a brand and attempted to to milk the brand loyalty while cutting back on things that kept people loyal. It was a great ride. Thanks OG NewEgg!
I remember when your shopping cart was an egg carton, and your items were little eggs that were put in the carton. It was pure. Never had a single issue with them. Their customer service was honestly amazing, one of the best Ive experienced (at that time). As soon as they went public and were beholden to shareholders, it all turned into rotten eggs.
3:55 this chart is confusing. What's the X axis? It can't be annual profits, +30M from 2020 is lower than -57M from 2022, and the gap from +36 to -57 is barely bigger than -57 to -59. Is the animation just random nonsense? That's not how you visualize data.
I quit Newegg when they gave out customer data to New Jersey without a warrant. This was before the court decision forcing online retailers to charge state taxes.
I guess that explains why they abandoned their warehouse and pick up center in New Jersey. That was the only reason why I use them. I can go down there and pick stuff up.
Conrad Electronics was a good place for consumers and pros alike a decade and a half ago. EDIT Sadly I can't even recall when I had seen a physical store the last time, though.
Once a company start chasing "shareholder value" and stock price, the entire business starts it's journey towards circling the drain. Customer Service makes or breaks a company. Poor customer Service is reflective of poor management. Again, poor management destroying a company.
Unfortunately these kinds of practices seem common nowadays. Companies/organisations scam people and only rectify the situation if people kick up a fuss.
When Newegg was a 1st party only retailer, they were the best to deal with. Then, they decided to file for IPO 2008, receded it in 2011, then started a market place in 2010. This was the beginning of the end, but it was still under the original Newegg leadership. In 2016 Newegg basically sold majority control, then on 2021 all hell broke loose.
@@markm0000 if one opens even closer to you, I would heavily reccomend going there for your computer parts needs The ones I've been to have always been amazing in terms of customer service, in the rare instances I had issues
Great informaitonal video. However, I had to point this out, as it was right funny. 10:35 Motherboard - Shows Graphics Card Graphics Card - Shows Motherboard CPU - Shows the entire computer in case.
To be fair, I bought a Lian Li case from them last year. It arrived in fine condition, shipped quickly & I had no complaints. It was not previously returned or damaged. Admittedly, I have not bought anything from them in over 5 years due to other options. Not a fanboy but just someone saying they’re not all bad. Unrelated to this story, I recall some guy suing companies for using the “shopping cart” icon & Newegg stood up to them &won. Forget how long ago that was but was a win for small businesses. Hero to zero.
The PC tech companies are playing Musical Chairs on who is roasted for horrific customer treatment. Gigabyte and the explosive PSUs, Asus recently and of course Newegg
Even better title: How Shareholders ruined NewEgg like they do everything else. Businesses have become more focused on making shareholders happy instead of their bread and butter; the customers.
@@antikommunistischaktion Stop sharing misinformation, most countries do not require any growth by law. Growth is simply intrinsically present in cultures that focus competition as its tenet, and companies are falling for the growth trap all over the world.
>2.1 percentage point decline in repeat purchase >7.8% average order value decline I mean... it's not rosy but it doesn't exactly look "destroyed" either.
@@LogicallyAnsweredgiven how many companies lost 99% of their value or more in a recent history, it really begs the question of whether the share prices has anything to do with reality at all.
@@АлексейГриднев-и7р Share prices being tied to nothing concrete is why a lot of investing has more in common with gambling than reality. Too many share are purchased by those betting that share X is going to be the next big thing. This is why the S&P500 beats almost every single fund managed by groups people making millions to guide them.
@@stellviahohenheim Newegg definitely is evil now but I wouldn't accuse this guy of being a simp, I think he brings up a valid point that some of the fundamentals of the company didn't actually change much which is surprising consider the hammering they took in the market.
It wasn't the youtubers that brought them down, but their own decisions. RUclipsrs may have accelerated it by making it more public, but things like this spread on the internet at some point and the decline was inevitable already.
Idk maybe I am wrong.. but does the graph @10:23 represent a 2% decrease? Regardless there’s no significance to such a small change and definitely within margin to attribute market factors. Also the decrease in volume per purchase seems normal considering the cost of GPUs leveling out. Not an attempt to defend Newegg, honestly thought it was one of those temu sites or whatever before today. Just totally vaporized any credibility from my perspective
That chart is not the customer repeat purchase rate as he insinuated. That is the stock price since ipo. The stock price is down 90% but the customer repeat purchase rate is down 2%. Misleading
0:25 After going through a literal worldwide plague and seeing people diving headfirst to get infected, we need a new phrase. "Avoid like the plague" doesn't quite have the same feel it did 5 years ago, haha!
Its a nice video, but it does overlook a couple of major company changes, such as when Newegg started acting like they wanted to be Amazon and started having a 'marketplace' where they are not the seller. That clearly causes some priorities shifting.
I remember looking at the prices and they were outrageously expensive. Also whenever a company goes public in the stock market, avoid it like the enshittification plague.
Sadly its only in a few parts of the world and outside europe. Seems like the elites rather want us europeans to pay skyscraper high prices for parts with ±21% taxes added and shipping just to make it a bit more expensive because we are all rich /s
Third party sellers made me never want to go back. I had a bad experience with one (that newegg surprisingly resolved) and then I thought, screw it, I'm not doing this anymore.
Yeah, i bought a ton of builds through them until 2013-2014 once i made the switch to laptops. Never had an issue, just got lucky and got out in time. Hopefully MicroCenter doesn't go the same way.
I live under a rock, I guess. I’d never heard of any of this. I purchased $4000 worth of pc parts from them a few months ago and everything came together in perfect working order. Must’ve been incredibly lucky.
I feel like something is a little bit off here with the timeline. someone correct me if I'm wrong, but no one went on amazon in the 2000's to buy electronics. They went on there to buy textbooks. I know its hard to imagine a world before you could get anything and everything on there. but they were not the go to for really anything other than literature.
logically answered is utterly incompetent in this essay. newegg for the most part was trusted and approached by customers due to the intentionally deceitful use of the name which most people - including me - confused to be a rebirth of egghead software. a preexisting company with a large and loyal customer base
to be fair. the rest of your video is very accurate and informed. but at the time Newegg probably would have been competing with the likes of Fry's and maybe circuit city and CompUSA if they were still around. online shopping was still somewhat shadowed by brick and mortar retailers.
Yeah agree. I dont even remember knowing about them in the early 2000's. Maybe mid 2000's and even then i remember their website was so confusing and clunky, i avoided them like the plague.
I think you really should change the clickbait title. Maybe "RUclipsrs Expose" or "Newegg Destroyed" but the RUclipsrs didn't destroy the company, the destroyed themselves for the reasons you said in the video. The video is great, a good summary of the situation, but the title had me questioning if I could trust this RUclips channel anymore.
I'm in my mid 30s, a lot of you don't remember how awesome pre 2016 Newegg was, like he mentions in the video the pricing, the customer service, from returns to shipping your materials out as quickly as possible, they were the absolute best, at least online, I can't compare them to micro center at the time as I didn't live near one, and the closest one to me now is about 2 and 1/2 hours away.
well at least the rich achieved something in life before that person dies. his kids will probably inherit the fortunes and pass on to the next generation. cycle of life.
Thanks for continuing updates I'd rather trade the crypto market as it's more profitable. I make a good amount of money per week even though I barely trade myself.
Bro this is so fking true...... I bought a 165Hz 1440p monitor for over $800 and when I got my item, I hooked it up only to find the screen was broken in the top right corner. Like legit busted. Sent it back for a replacement or a refund. It really didn't matter to me. But they gave me the "We can not refund or replace this item as it is damaged".. Like wtf, you guys sent me the fking thing.... So I'm just out $880. I would have been better off going to the casino with that money... I should say though, they did send me back the broken monitor..
Id had called the Credit Card company and filled a credit dispute for their refusal to address a defective item. And now its between Newegg and the CC Company.
@@GamerLoggos I was afraid to do that because they did at least send me the item. I figured it would have been a waste of time. I bought the monitor back in early 2023. I finally gathered the courage to throw away the broken monitor last week. Was hoping to find a place that repairs 1440p screens. To no avail
I haven't built another personal power rig since before COVID, but it seems next time I should shop around some more after I verify parts compatibility with Newegg.
Even better, just use PC parts picker, that'll give you full system compatibility along with power requirements. It will then show you different websites where you can buy those parts along with their price
What's more incredible is the Australian Newegg division that basically dissolved over night when it was officially announced and presented in Australia to have brick and mortar stores... which never ended up happening and it became a graveyard of a website instantly and still is with mostly higher than AUD RRP lol
Fantastic video! I have incurred so much losses trading on my own.... I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong??
Investing with an expert is the best strategy for beginners and busy investors, as most failures and losses in investment usually happen when you invest without proper guidance. I'm speaking from experience.
@@fsldjfklasdj they should start wearing a helmet anytime they are in a car, maybe one of those riding jackets that have airbags that deploy when you are falling.
Same issue as always. As soon a Company goes Public, they start to cut down, to maximise profit for shareholders.
It's almost as if having a stockmarket is a bad idea for the majority of people.
Well the shareholder got their money and moved on, leaving a corpse behind.
Yes and no. Vital but everything has a negative per say. @lolbored801
Any for-profit company that is either privately owned or publicly traded is about maximizing profit for the shareholders.
@@skyvenrazgriz8226They didn't, though. Short term profits and long term losses are NOT what investors want. Companies used to sell on value in the market, not quarterly earnings. Fundamentals mattered most.
Maximizing shareholder value tends to lead to companies abandoning the company culture that made them successful in the first place.
It's more about short term gains vs. long term strategy. Especially when it comes to private equity firms who want to sell off the company they just bought as soon as possible, after "turning it around". Shareholder value includes stability as well as a decent return. But when new management takes over, they almost always focus on the short term, and that means penny pinching, killing the culture and driving off the firm's more valuable people.
Jack Welch eventually admitted it was the silliest thing ever
I would say almost every major ceo ascribes to "maximizing shareholder value" (they do work for the shareholders). Therefore, whenever a company does poorly, we can apply this narrative too them - as almost all companies are doing it.
If you pick any of the "very good" companies, (AAPL, MSFT, DHR, etc.) they are also doing this - just more successfully.
If only the government didn't step in in the 30s and make it so public companies are legally required to maximize shareholder value.
That's why it's better to stay private and go for sustainable organic growth instead of the drive for unsustainable profit and margins. Getting an influx of money by going to the open markets will lead to maximizing shareholder value over customer value, greed over selflessness. That being said, because Microcenter is not a profit-at-all-costs kinda company, many of us won't see a Microcenter in our neighborhood anytime soon, and that's ok.
Better title “Newegg destroyed their own business”
Or, "Chinese firm buys out and ruins Newegg" oh but wait funnily enough there's zero mention of Liaison Interactive anywhere in the video.
Not as Clickbaity
It's the American model
I remember buying a hard drive back in 2012 which was DOE (defective on arrival). I filed for a refund and it was denied saying that I damaged it. Well, that was the last time I give them my money. F 'em!
or "Yet another example of what happens when a company goes public"
Former employee here: part of their failure is due to selling their company to a Chinese investor. They constantly put pressure to recoup their investment cost and go public as soon as possible at the detriment of the company. Hired incompetent C level execs and paid such low salaries that the good employees would leave shortly after. It was a very toxic work environment and everyone either hated their managers or kissed ass to not get fired. I’m glad that place is going under.
Interesting that he never mentioned anything about new ownership in the video. Do you think with all the research that that would have came across at some point.
@@PLANETWATERMELON it wasn't "new". This happened maybe almost 10 years ago now(?). They've been gradually on the decline since. It is just now the cracks are REALLY starting to come to the surface on a large scale. Fun fact, Newegg is probably about 90%+ Asian/Chinese internally. The people they hired during the Gamer's Nexus interview were there no more than a year before that and they were specifically hired to look "American" and be the face of the company. But all the actual people with power/pull are Asian.
All such companies deserve to go under.
@@ncodexg yup. I heard of this change around 8 years ago and completely stopped buy from new egg once I learned of this and sure enough, it was the right choice to make. Its a pity, I sue to buy most of my computer hardware from/between them and microcenter.
Many of these Chinese investors are in fact Trojan horses, sent to run the companies into the ground, steal the IP and then open competitors in China
I know it’s for the clicks but putting Linus on the thumbnail when he basically did nothing is super disrespectful to Steve and other RUclipsrs that actually did all the work…
I take Linus's criticism of others super ironically as of this year.
It was done in bad faith because most people already saw Steve's video and would think 'I already know about that' vs 'I didn't hear what happened with linus'
@@Brometheus420 Steve is the best tech journalist
100%
@@Potent_Techmologyhe should really get a haircut
Allowing 3rd party resellers was end of it for me. When the video card prices skyrocketed, it became much worse.
I've spent tens of thousands with them getting parts for work. Around the time they added third-party sellers, I also noticed that newegg themselves rarely had the parts I needed, and if they did, it was not the best deal I could find. Not purchased from them for some time.
Bingo
Yes when I went on there to buy parts for a new pc after it's been a few years, the third parties and the website layout was horrible. Ruined the website. I miss the old new egg.
I recently ordered half my PC from Newegg and half from Amazon. On Amazon I accidently ordered 3rd party and cancelled the order. Had no issues with Newegg. I did watch gamers nexus videos but ordered anyways. I did return an expensive item to Newegg without issue. This was about two months ago.
We should also blame this on the idiot who came up with the marketplace idea in first place.
Same story as old as time. Once you go corporate, you lose the things that fans liked. Everyone who cares about the company gets replaced by people who only care about balance sheets and accounting. And then you lose the number one reason why people used your services/company in the first place.
Thanks Jack Welch, for making "maximize share holder value" the plague of corporate governance.
@@rebeltheharem7028 And Ronald Reagan. Don't forget what one of the greatest anti-workers have done for blind belief that companies were so good-hearted. Ever since "trickle down economics" philosophies were introduced, they NEVER got removed again. Funny how "solutions" that "inadvertently" hoard wealth in the hands of few are so hard to be corrected.
"Once you go corporate" - where is Liaison Interactive, the company that purchased them in 2016, from again?
@@zachariah7114 what does liason being a chinese company have to do with this, even if they were american outcome would be the same
@@malcolmsmith333 evidently not. its absolutely relevant.
Nailed it!
I remember when newegg got caught selling fake processors and tried to blame shady suppliers.. this was way back in 2010.
they straight up gangster on selling defected returns as new
Lol 😅
@@WildFungus yeah, I bought 2 segate drives. One didn't work at all. I thought it was defective. I then had to pay $20 plus shipping and handling to send it back. They called the $20 dollar fee a restocking fee. I was like why are you restocking it when it's defective? This was back in 2015. There were articles that seagate switched to a new factory and their defective rates increased. I bought another one and then got fed up and did an RMA with seagate they said they will send a new one. They send me a refurbished one. I stopped buying from seagate and just bought from WD. I am going to build new computers next year and for sure will not use newegg.
I had forgotten all about Newegg. The last time I had checked them out was prior to 2007.
I work at an Amazon facility and they had a supplier sell them over 10k worth of AMD processors that were pre gift wrapped for Christmas. Every box had all the manuals and everything inside except the processors. Sometimes suppliers are scammers and since everything has a factory seal you don’t know till the complaints start rolling in.
Why did you use Linus as a thumbnail instead of Steve he's the one that did most if not all of the leg work for the exposure ....
Yeah, I thought I was clicking on a LTT video at first. Still interesting, but putting someone else in your thumbnail is misleading and super annoying. 😑😠
It seems made to get more engagement from these comments. Not a good tactic.
Because Linus is more known than Steve so to reach more people, they used the more popular face.
LTT would gladly shill in Defense of current Newegg
steve doesnt make nearly as dramatic of a face
Private company - You work for the customer
Public company - You work for the shareholder
The ONLY way the latter works is if, somehow, the shareholder IS the customer. But shareholders tend to have lots of wealth. Most Americans don't.
I disagree.
Private = you work for the owner
'Public' (stock exchange)=you work for the most successful shark among the shareholders.
This corporate culture that many US citizens seem to love so much has hidden all sorts of crimes and deeds to maximize profits for a handful, leaving good employees in despair and peril (toxic workplace and loss/mispayment of wages) and customers - who also happen to be in most part employees in other companies that do the same - powerless to solve problems with malfunctioning products/services.
Wait till you see what happens when Private Equity takes over a Public company and brings it private....
short version: they had some success and management became arrogant and greedy and started lying, scamming and stealing from their customers.
I find it odd how literally nowhere in the video that the company was bought out by a Chinese investment firm and that was precisely when things started to tumble.
Thks
@@antikommunistischaktion well, Newegg only started earning a profit on 2019. Prior to that, they were bleeding money.
I might have heard that story before 😒
@@antikommunistischaktionthis is the answer, went downhill after it was bought and they added the "market"
I used NewEgg to build a PC back in 2015. It was absolutely amazing, really. Now, I didn't buy my parts from NewEgg... I just used its PC builder and bought the parts from whoever had them cheaper at the time. It's still my most reliable PC to date, barring a single failed SSD.
Same exact thing with me just haven’t finished the build yet but surprisingly they had great prices fine shipping times and excepted PayPal unlike Amazon
i just use pcpartpicker, you should try it sometime
Same! I bought all my parts from them in 2015, fast forward to last December I only bought my CPU, GPU and MOBO from them.
I didn't know I was taking such a huge risk. I thought they straightened themselves out since Steve went there and called them out.
same here
@@E-raticWarrior Funny, I also bought most of my current main PC from them at about the same time, and also with no idea they'd been having so much trouble. Just assumed they were still the same Newegg I've trusted for as long as I've built my own PCs. Anyway, all my parts were fine and are powering the PC I'm using right now to post this. Guess I got lucky?
I also just remembered: I even bought a good chunk of parts around May of this year for a build for a family member, also without issue. Really hoping this means they've straightened things out after all.
Before the video started I was guessing it was a case of "they got greedy and stopped giving a shit about customer service" while knowing nothing about the company or background story. Turns out I was correct.
Yes sir
Greedy, dunno. Lazy, definitely.
En-sh@t-ification as Musk called it.
I used to buy from Newegg but it was under a different name. I don't remember what it was. They had a bad rep for bad customer service. Apparently they can't get away from giving bad service. Now it looks like it's more than bad service. It's outright scamming.
When Newegg had the lowest prices and high quality service, they were losing money (for the first 18 years of their existence!) Then when they provided less service, they finally started turning a profit.
When I worked there back when it was the Newegg described, it was all about Customer Service. I can tell you this video hits spot on.
I received a bad mobo, and video card, and the “damaged by customer” BS happened to me, I spent my savings to buy that computer only to have to save up again to complete it.
They sent me the wrong cpu. Ordered an i9 13900k with a motherboard combo. They sent me an i7 with it. I requested to return it unopened. They denied the return on arrival saying it was damaged and I had to buy an i9. Went 900 out of pocket.
You should have to go to the police!
I would make a police report & really get things happening, it's theft
I bought a Logitech G502 mouse. Got a random aliexpress special "G502" mouse. Customer support wanted me to confirm with Logitech that it was indeed a counterfeit. They confirmed it was. Then they had the gall to tell me Logitech's customer rep didn't confirm it was counterfeit. Then they told me to send back the counterfeit item (which I refuse to do since I know they'll just send it to someone else AND BECAUSE I DON'T HAVE TO BY LAW). And they were charging me a restocking fee.
Posted on Reddit and asked for their legal team to the customer service rep, I think I did send a nice email reminding them of applicable law. Did get a not moron customer retention rep, but I never bought from Newegg since. Few weeks later, there was a mass email that the specific seller was selling counterfeit goods and my (already refunded by now) item would be refunded.
Never took their 50$ offer to keep me as a customer.
And block/dispute the transaction. Most banks will return the cash asap
Small claims court.
This scenario happens over, and over because retailers don’t understand they are in the customer service business. When you don’t design, or build products, the only thing they have control over is the customer experience.
Their customer service switched to serve share holders
You're the one that misunderstands. They ARE serving their customers, and they're doing it well.
They've just changed who their customers are.
Perfect explanation! Best comment I've seen that showcases the disconnect between retailers and the CUSTOMERS they are supposed to "serve."
@@fillerbunnyninjashark271it didn't serve the needs of shareholders either
To be fair RUclips personalities had nothing to do with Newegg's decline, the company did it to themselves.
They choose the thumbnail for maximizing click bait.
It's a shame. They had really did a good job of rebuilding themselves after they renamed themselves to "NewEgg". I've bought from them plenty of times since they were around. Even when they still had their original name. I last built another PC back in 2021. Everything has been running fine.
I only half agree. Like obviously if newegg didn't pull all their shady crap, they would've been fine, but if the youtubers didn't come out and make videos about it, it likely would've flown under the radar. After all, I doubt most people are going out and constantly checking whether or not a company has suddenly become super shady, so it's awareness from those big youtubers that helps spread the word.
Like I apparently either missed or forgot about the newegg stuff so I didn't realize until this video that I should avoid them. That's the power that being a youtuber with an audience comes with and why I think it's fair to say youtubers were a major factor in the decline of the company.
@@XdivineExp I'm a day trader that's balls deep in tech sector, NewEgg was already silently dying. The RUclipsrs exposing NewEgg were only "accelerating" the process, the company had negative income since 2021. Domestically they can't compete against Micro Center and Amazon both in price, quality and delivery speed. Internationally they can't compete against anyone at all because pretty much everything on their website have anywhere between 50-100x every other competitors' product price, delivery fee, taxes that did no made sense.
To highlight how bad NewEgg is, including tax and delivery fee, a 4090 cost almost between $500-$1500(dependent on country) extra compared to buying it off Amazon for international delivery outside of North America. Most ecommerce sites turn to globalization when domestic sales start to falter, they're fail at both fronts. Chapter 11 is inevitable even if RUclipsrs did not make videos about them. People already stopped recommending NewEgg since 2022 when their price gouging did not stop despite other competitors already normalizing in prices.
To be fair big RUclipsrs brought the issue to the attention of a lot of people that would never have known about it otherwise
what happened to tiger direct?
They weren't actually related, but I remember buying things at Egghead in 2001 and they shut down not long after that. I didn't know about Newegg yet, so when I found out they existed, I immediately assumed Egghead had rebranded or reopened or something. I sometimes feel like I'm the only person who went through this.
I came to the comments to see if anyone would mention Egghead. I thought they had rebranded as well and always had a good vibe based on Egghead.
You are not. My friend convinced me NewEgg was a rebrand of Egghead also.
ditto
You're not the only person. Many people thought Newegg and Egghead were somehow connected.
Egghead had physical stores correct?
I used newegg as a young man in the early 2000's. There was nothing like it. The prices, the help with specifications. A lot of young kids don't realize back then the current generation of computers could have 1 of like 5 different kinds of RAM. Computer parts have been way more universalized since then, 1 kind of RAM, PCI Express, and then just matching the cpu socket to the board. It used to be way more complicated.
All the parts now have labels on what goes where as well… (usually).
No kidding - I was able to use Newegg to source upgrade parts for an old Compaq PC that kept it running a lot longer than it should have. I visited the site more recently and it felt so off, it was giving AliExpress vibes.
More grown up Legos.
I actually think Legos can be more complicated.
Lmao….less complicated? I call bs….im willing to bet there is a clear anti consumer reason for every company nowadays naming ejhdhdjdkjejebbddbjdjeu287748ultra for other part……
2004: Once you know, You NewEgg
2024: Once you know, you go somewhere else
once you knew NewEgg, now you know BadEgg.
The laughable part of the Gamer's Nexus situation is that they left the RMA sticker on the board from when they sent the board for repair from the manufacturer.
Which just goes to show they're too lazy to even try to cover up their own corruption.
It's like WalMart, where TWICE I've bought electronics sold as NEW that proved to be used when I opened them up (like an answering machine that already had messages on it). I don't buy electronics from them now (not that I shop there much at all)
I was done when they added 3rd party sellers.
Anybody remember Tigerdirect?
They had to send in 5 suits to deal with Steve and they still failed lol.
The suits are not any different from a normal person, and if they are from a public company they are just nepotists, they are liquidators, not people with technical knowledge.
I'll bet if we dug deeper, the suits is where the problem started. The ones who started the company did alright, but at some point they had to hire some suits to run it.
The suits were no match for Tech Jesus's luscious locks. :P
Cutting salaries is a move of desperation to avoid insolvency. It is the worst thing to do if you need to provide customer service.
Why does this guy sound like he's about to tell me a secret but never does.
😂😂😂😂 this sums up the cadence if his speech perfectly
Feels like a mediocre BuzzFeed article.
Newegg ruined itself by de-prioritizing customer service, and firing the employees who had the balls to speak up. I worked in their reverse logistics department and boy do I have some stories.
10:02 “It’s hard to blame leadership because the turnover is so high”. You sound like the only work experience you have is being a youtuber. High turnovers are most definitely the fault of leadership/management, due to their actions or lack of.
Well, when the turnover is _among_ the leadership... It's still the leadership's fault, you just need to figure out which version of it. Steve mentioned a few months after this happened that none of the executives whom he interviewed still worked at Newegg.
Once famous for its exceptional customer service and product quality, it's disappointing to witness its downfall largely due to management discrepancies and disregard for customer concerns.
I bought a laptop in the pandemic from Newegg not knowing all the problems they were having in 2022. My laptop was listed new but obviously I couldn't beat the price and I knew Newegg was a reputable source amongst pc users.... or so I thought.
I received my laptop and inspecting and general cleaning the day it came I noticed that one of the screws holding the bottom panel was stripped out. So I did some digging and opened the case. To my surprise the laptop was not new and it even had non oem mismatched ram and everything.
To no one's surprise from this video. I was ghosted after 4 days of back and forth with support.
4 months later the motherboard grenaded itself rendering the keyboard and mouse pad useless.
Non detectable battery charge rendering the laptop mobility useless.
And more, but overall I'm not giving those people my money ever again.
This may seem harsh but I'm glad they go under. I have no idea how things like this is not illegal and would warrant investigation from officials seeing it as its an American based company.
I hope micro center keep growing as they do because never ever have I had a bad experience with them.
About legality of such things - did you report your purchase to any consumer protection agency? Cause I hear a lot about people getting by businesses, but people actually properly reporting those scumbags seems rare.
@FreaKill666 well is something that I just never thought of at that time you know. Is been 4 years now so I doubt I would have a case. Plus I was younger back then and didn't really care for such things. Now I have a tighter grip in my financials and I'm more educated on consumer laws and how scummy business can be. Guess you got to get burned atleast once to know if the stove is hot or not
Knowing what I know now if I was in the spot the second they stop responding I’m going straight to the credit card agency to dispute.
I had to do this with Adobe because they practically refused to cancel my subscription that I at least thought I cancelled 4 times already at that point. We’re talking like 4-5 pages of “are you sure’s” that were made to appear like you already successfully cancelled. I got on to a live chat with their support and they just stopped responding to me.
Provided the chat to the bank for the dispute and got my money back lol
@IAmCjcj11 I'm going through this rn with planet fitness. I just had to escalate with corporate to get 3 months of refund. I have one of their workers on video telling me that my subscription was cancelled and they kept charging me. This time though if corporate doesn't answer me I will have to communicate with my bank. I moved state lines there isn't a PF near me for atleast 4hrs away.
But yeah wish I knew so many things when I was younger I could've probably had my own house by now
I ordered a galaxy s22 ultra from Amazon and received a cheap fake clone. It's very scary when you believe you got scammed and lost thousands of dollars. Report. Always report.
Newegg destroyed themselves with all of their shady behavior.
uh oh, i just bought a graphics card from newegg last week but wasnt planning on opening it till i get all my pc parts through out the year, should i open it to make sure its good? 😳😳😳
Versidium's making moves. Glad to be part of it!
Newegg forced faulty power supplies on customers who just wanted to buy graphics cards.
Faulty as in "could literally explode fresh out the box under normal load." And GamersNexus was instrumental in exposing that too.
AND when the PSU went bad you had to return the GPU too.
Yeah that was one of the fucking stupidest things I’d ever seen.
I remember seeing those for sale and thinking it was weird.
They lost me a LONG time ago when they locked my account (because I ordered parts as a gift for a friend), informed me by email about it, left a number for me to call for assistance. I called the number and was told that they could not help me. WTF did they even bother giving me a number then?!
One other issue that hurt Newegg is the fact they were happy to sell exploding power supplies as parts of bundles as well as individually when they knew they were faulty.
So, it really isn't "NewEgg". The company was sold, the new owners owned a brand and attempted to to milk the brand loyalty while cutting back on things that kept people loyal. It was a great ride. Thanks OG NewEgg!
I remember when your shopping cart was an egg carton, and your items were little eggs that were put in the carton. It was pure. Never had a single issue with them. Their customer service was honestly amazing, one of the best Ive experienced (at that time).
As soon as they went public and were beholden to shareholders, it all turned into rotten eggs.
Someone should hack their storefront servers to do cracked/rotten egg icons
LOL, Linus is gonna be mad about the thumbnail :P
Goes kinda hard tho
Hahaha
Well Linus is a king of clickbait as well so... no pity for him
@@LogicallyAnswered Can we get an analysis of Truth Social
@@skyvenrazgriz8226 lol you must be new on RUclips if you think LTT thumbnails/titles are clickbaity 🤣
The repeat purchase rate graph looks like you're looking at a spike on an otherwise flat graph. Basically no trends there
Yeah, both of the statistics cited there were not good. The numbers didn't change that dramatically and he's making it out to be a big deal.
Omg he’s back!!! Also it’s so nice to start with a UFD tech clip they today reached 1 million subs. Waiting for your shiny day
Ah that's awesome man! Yes, one day
3:55 this chart is confusing. What's the X axis? It can't be annual profits, +30M from 2020 is lower than -57M from 2022, and the gap from +36 to -57 is barely bigger than -57 to -59. Is the animation just random nonsense? That's not how you visualize data.
Great review man❤
I quit Newegg when they gave out customer data to New Jersey without a warrant. This was before the court decision forcing online retailers to charge state taxes.
I guess that explains why they abandoned their warehouse and pick up center in New Jersey. That was the only reason why I use them. I can go down there and pick stuff up.
Good that NewEgg isn't in Germany. Though, I wish we had MicroCenters here...
Agree, which we had MicroCenters in Europe.
Wir haben MediaMarkt und Saturn 😂😂
(Oder MediMax und Expert wenn MediaMarkt und Saturn zu weit weg sind xD)
JK JK kreuzigt mich nich 🤣
@@kaystephan2610 lol....Media Markt, die geballte kompetenz in PC hardware..brilliant
You don't need a Micro Center. You got free healthcare. You'll be fine.
Conrad Electronics was a good place for consumers and pros alike a decade and a half ago. EDIT Sadly I can't even recall when I had seen a physical store the last time, though.
Customer service is bad, they cut salaries ?
What would motivate employees?
It’s always management’s fault.
Yes. It always starts from the top.
Great video! I totally missed all the bad news about NewEgg so it's great to get it all summarized in one video :)
Okay guys we don't need to put Hari's picture on the milk cartoon he's back safe.
😂
Similar to Blurs video Coffee and TV
Once a company start chasing "shareholder value" and stock price, the entire business starts it's journey towards circling the drain. Customer Service makes or breaks a company. Poor customer Service is reflective of poor management. Again, poor management destroying a company.
Unfortunately these kinds of practices seem common nowadays. Companies/organisations scam people and only rectify the situation if people kick up a fuss.
When Newegg was a 1st party only retailer, they were the best to deal with. Then, they decided to file for IPO 2008, receded it in 2011, then started a market place in 2010. This was the beginning of the end, but it was still under the original Newegg leadership. In 2016 Newegg basically sold majority control, then on 2021 all hell broke loose.
How did a company specializing in tech have the worst website in the world for 20 years
They charged me $20 restocking fee for 2 sticks of RAM. Whatever. More choices exist now.
Microcenter destroyed NewEgg in my parts of the world.
I live a few hours from a Microcenter and I feel like I should go there instead of supporting these trashy online retailers.
@@markm0000 if one opens even closer to you, I would heavily reccomend going there for your computer parts needs
The ones I've been to have always been amazing in terms of customer service, in the rare instances I had issues
@@markm0000 Do it. It's worth the few hours of drive when I go.
Just wish there was one closer to me. I'd shop there if it wasn't so far away.
If only I, from New Zealand can buy from Microcenter
no mention of the ownership transfer?
Great informaitonal video.
However, I had to point this out, as it was right funny.
10:35
Motherboard - Shows Graphics Card
Graphics Card - Shows Motherboard
CPU - Shows the entire computer in case.
To be fair, I bought a Lian Li case from them last year. It arrived in fine condition, shipped quickly & I had no complaints. It was not previously returned or damaged. Admittedly, I have not bought anything from them in over 5 years due to other options. Not a fanboy but just someone saying they’re not all bad. Unrelated to this story, I recall some guy suing companies for using the “shopping cart” icon & Newegg stood up to them &won. Forget how long ago that was but was a win for small businesses. Hero to zero.
Well if the turnover is high, company is already dead. Experience employees are key to success.
Glad you are back!!! Missed your videos!!
Thanks for watching Daniel!
Everything that goes public eventually goes to shit. All I can say is thank god Valve is a private company.
The day Gabe passes and someone eventually turns steam public, pc gaming is dead.
Great, factual and logical video Hari! Looking forward to seeing more from you
I was a Newegg fanboy, until they had a data breach that cost me over $600. I never went back.
The PC tech companies are playing Musical Chairs on who is roasted for horrific customer treatment. Gigabyte and the explosive PSUs, Asus recently and of course Newegg
Even better title: How Shareholders ruined NewEgg like they do everything else.
Businesses have become more focused on making shareholders happy instead of their bread and butter; the customers.
Companies have a legal requirement to maximize shareholder profit and any publicly traded company that doesn't can get sued by the government.
@@antikommunistischaktion Stop sharing misinformation, most countries do not require any growth by law. Growth is simply intrinsically present in cultures that focus competition as its tenet, and companies are falling for the growth trap all over the world.
@@NothingXemnas I'm not sharing misinfo, I'm sharing caselaw and historical fact.
@@NothingXemnashere in the US it’s the law
@@antikommunistischaktion How can it be proved in the court of law that a company did or didn't try to maximize shareholder profit?
>2.1 percentage point decline in repeat purchase
>7.8% average order value decline
I mean... it's not rosy but it doesn't exactly look "destroyed" either.
99% decline in stock value too haha
@@LogicallyAnsweredgiven how many companies lost 99% of their value or more in a recent history, it really begs the question of whether the share prices has anything to do with reality at all.
Found the newegg simp
@@АлексейГриднев-и7р Share prices being tied to nothing concrete is why a lot of investing has more in common with gambling than reality. Too many share are purchased by those betting that share X is going to be the next big thing. This is why the S&P500 beats almost every single fund managed by groups people making millions to guide them.
@@stellviahohenheim Newegg definitely is evil now but I wouldn't accuse this guy of being a simp, I think he brings up a valid point that some of the fundamentals of the company didn't actually change much which is surprising consider the hammering they took in the market.
It wasn't the youtubers that brought them down, but their own decisions.
RUclipsrs may have accelerated it by making it more public, but things like this spread on the internet at some point and the decline was inevitable already.
Is this the same thing that happened to TigerDirect
Idk maybe I am wrong.. but does the graph @10:23 represent a 2% decrease? Regardless there’s no significance to such a small change and definitely within margin to attribute market factors. Also the decrease in volume per purchase seems normal considering the cost of GPUs leveling out. Not an attempt to defend Newegg, honestly thought it was one of those temu sites or whatever before today. Just totally vaporized any credibility from my perspective
even that isn't honest since it was compared to a very short spike. the graph axis makes it very misleading too
That chart is not the customer repeat purchase rate as he insinuated. That is the stock price since ipo. The stock price is down 90% but the customer repeat purchase rate is down 2%. Misleading
Steve is doing the job that a customer rights gov. agency should do... but these countrys dont have those...
I remember GN's visit and interview: a room full of VPs and other corpos who no doubt had their hands full of Shares and were part of the problem.
i avoided clicking despite my interest in the title because of linus in the thumbnail. glad the algo recommended it to me a second time.
Did you take the magnets media course? Or just a fan? I always enjoyed his style!
Great video as always
Thank you as always Balpreet!
0:25 After going through a literal worldwide plague and seeing people diving headfirst to get infected, we need a new phrase. "Avoid like the plague" doesn't quite have the same feel it did 5 years ago, haha!
Ah, after a long time. Welcome back buddy. Regular videos when?
Should be weekly starting August!
Its a nice video, but it does overlook a couple of major company changes, such as when Newegg started acting like they wanted to be Amazon and started having a 'marketplace' where they are not the seller. That clearly causes some priorities shifting.
Vematum's consistent progress updates show dedication.
I put too much salad dressing on my salad and now it is kinda ruined. Aww man.
@OriginalContent89 Plot twist...I used all the lettuce and veggies.
I remember looking at the prices and they were outrageously expensive. Also whenever a company goes public in the stock market, avoid it like the enshittification plague.
you mean they destroyed themselves, Microcenter is better anyway
Does Microcenter ship to residential?
@@Denastus technically yes, but most are in store only
Microcenter needs to be international. Not just for USA.
@@DenastusThey offer some items for shipment, but I don't think it's their whole catalog. Worth checking.
Sadly its only in a few parts of the world and outside europe. Seems like the elites rather want us europeans to pay skyscraper high prices for parts with ±21% taxes added and shipping just to make it a bit more expensive because we are all rich /s
Third party sellers made me never want to go back. I had a bad experience with one (that newegg surprisingly resolved) and then I thought, screw it, I'm not doing this anymore.
So a company with the equivilant of internships for executives is struggling. Makes sense.
As someone who was personally denied a return because they thought I damaged it, good riddance to this company.
2005 or so, Newegg supplied me with my entire computer build. Living local, i was able to have my parents take me to pick the parts up.
Sadface :
Yeah, i bought a ton of builds through them until 2013-2014 once i made the switch to laptops. Never had an issue, just got lucky and got out in time. Hopefully MicroCenter doesn't go the same way.
aww...thought this was gonna be about Linus Media Group. lol
They knew what they were doing when they made the Thumbnail
@@dagobert1234321 Yeah! Most clickbait thumbnail I’ve ever seen. Literally nothing to do with LMG.
Gonna take quite a few years for them to go under, if ever
@@Fernando-ek8jp Yeah. Some folks are hesitant to report sexual harassment.
@@Chuck8541 yet you seem to know about them. What other cases have you heard of?
I live under a rock, I guess. I’d never heard of any of this. I purchased $4000 worth of pc parts from them a few months ago and everything came together in perfect working order. Must’ve been incredibly lucky.
Man... I really hope it's not the end for them. I've spent tens of thousands with them over the last 20 years and never had a problem.
I feel like something is a little bit off here with the timeline. someone correct me if I'm wrong, but no one went on amazon in the 2000's to buy electronics. They went on there to buy textbooks. I know its hard to imagine a world before you could get anything and everything on there. but they were not the go to for really anything other than literature.
logically answered is utterly incompetent in this essay. newegg for the most part was trusted and approached by customers due to the intentionally deceitful use of the name which most people - including me - confused to be a rebirth of egghead software. a preexisting company with a large and loyal customer base
to be fair. the rest of your video is very accurate and informed. but at the time Newegg probably would have been competing with the likes of Fry's and maybe circuit city and CompUSA if they were still around. online shopping was still somewhat shadowed by brick and mortar retailers.
Yeah agree. I dont even remember knowing about them in the early 2000's. Maybe mid 2000's and even then i remember their website was so confusing and clunky, i avoided them like the plague.
Using Linus' face is so wrong
I think you really should change the clickbait title.
Maybe "RUclipsrs Expose" or "Newegg Destroyed" but the RUclipsrs didn't destroy the company, the destroyed themselves for the reasons you said in the video.
The video is great, a good summary of the situation, but the title had me questioning if I could trust this RUclips channel anymore.
Changed :)
@@LogicallyAnswered Thanks! I like it way better.
Denying DOA refunds killed it for me. I had to do a charge back on em
I'm in my mid 30s, a lot of you don't remember how awesome pre 2016 Newegg was, like he mentions in the video the pricing, the customer service, from returns to shipping your materials out as quickly as possible, they were the absolute best, at least online, I can't compare them to micro center at the time as I didn't live near one, and the closest one to me now is about 2 and 1/2 hours away.
*No man was born rich that's why we have do our best to achieve something in life. Before we get old.*
You are right we have to achieve something in this life so our children won't sofa it
well at least the rich achieved something in life before that person dies. his kids will probably inherit the fortunes and pass on to the next generation. cycle of life.
Thanks for continuing updates I'd rather trade the crypto market as it's more profitable. I make a good amount of money per week even though I barely trade myself.
Finding yourself a good broker is as same as finding a good thing, which you go less stress, you get just enough with so much little effort at things
No I don't trade on my own anymore, I always required help and assistance
Bro this is so fking true...... I bought a 165Hz 1440p monitor for over $800 and when I got my item, I hooked it up only to find the screen was broken in the top right corner. Like legit busted. Sent it back for a replacement or a refund. It really didn't matter to me. But they gave me the "We can not refund or replace this item as it is damaged".. Like wtf, you guys sent me the fking thing.... So I'm just out $880. I would have been better off going to the casino with that money... I should say though, they did send me back the broken monitor..
Id had called the Credit Card company and filled a credit dispute for their refusal to address a defective item. And now its between Newegg and the CC Company.
@@GamerLoggos I was afraid to do that because they did at least send me the item. I figured it would have been a waste of time. I bought the monitor back in early 2023. I finally gathered the courage to throw away the broken monitor last week. Was hoping to find a place that repairs 1440p screens. To no avail
I haven't built another personal power rig since before COVID, but it seems next time I should shop around some more after I verify parts compatibility with Newegg.
Even better, just use PC parts picker, that'll give you full system compatibility along with power requirements. It will then show you different websites where you can buy those parts along with their price
Use PC Part Picker. It will ensure compatibility between parts AND compare prices on said parts between retailers thats have it in stock for you.
What's more incredible is the Australian Newegg division that basically dissolved over night when it was officially announced and presented in Australia to have brick and mortar stores... which never ended up happening and it became a graveyard of a website instantly and still is with mostly higher than AUD RRP lol
Fantastic video! I have incurred so much losses trading on my own.... I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong??
Same here, my portfolio has been going down the drain while I try trading,I just don't know what I do wrong..
Investing with an expert is the best strategy for beginners and busy investors, as most failures and losses in investment usually happen when you invest without proper guidance. I'm speaking from experience.
Wow, I'm surprised to see Fenella mentioned here as well. I didn't know she had been kind to so many people
I'm also a huge beneficiary of her..
I thought myself and my family were
the only ones enjoying Fenella
trade benefits
Mrs Fenella successful stories are everywhere, all over the place.
8:50 Are they still wearing masks in 2024?
So? This was 2 years ago.
Yes, plenty of people are. Vulnerable people are still here, and so is COVID.
@@fsldjfklasdj they should start wearing a helmet anytime they are in a car, maybe one of those riding jackets that have airbags that deploy when you are falling.