ATER Stock on the Move

Aterian, Inc. (NASDAQ: ATER) – an expert at scaling brands – routinely acquires and partners with emerging brands using its proprietary software and supply chain to create the next top-selling products. As is, it owns 14 brands and sells their products across various channels such as Amazon, Walmart, and eBay. Recently, ATER stock has seen a surge in its trading volume – increasing from its average of 11 million shares to 160 million shares – leading to a 167% increase in ATER stock. This run up was triggered in part by the addition of former Amazon executive Cynthia Williams to its Board and the Financial Times ranking of ATER among the USA’s top 500 fastest growing companies. After becoming one of the hottest Reddit stock picks, ATER stock has gained significant momentum on FinTwit as well thanks to its short squeeze potential.

ATER Stock News

Using its business model, ATER has shown notable revenue growth in recent years. With 14 brands in its portfolio and over 300 products launched, ATER’s success is partly due to its proprietary software platform AIMEE which enables ATER to find lucrative new product opportunities. AIMEE analyzes shopping-related data while projecting cash flows from these potential products to capitalize on product opportunities in the e-commerce market. 

Based on this data, ATER manufactures these products under its brands and launches them within six to eight months after identifying them. Aiming to become one of the world’s most efficient consumer product companies, ATER is investing in additional technology and supply chain solutions to increase its profitability as well as seeking out opportunities to commercialize its AI technology.

To achieve this, ATER added Cynthia Williams to its BOD. Having previously worked at Amazon and Microsoft, Williams’ appointment brings vast experience in technology and e-commerce to ATER. This appointment comes as ATER’s CEO Yaniv Sarig shared that he believes supply chain constraints will continue to ease in the future – positioning ATER to better pursue its ambitious growth goals. 

Aside from its fundamentals, ATER stock has been a favorite among investors following its incredible run up to $19 in August of 2021. Now Reddit investors are revisiting the stock at this beaten down level thanks to its lack of dilution concerns after its private placement in March. At the time, ATER issued 6.4 million shares in addition to warrants to purchase up to 7 million shares raising a total of $27.5 million in funding for acquisitions and development. The warrants themselves cannot be excercised for the next six months.

Meanwhile short interest has reached 18.5% of the float – an increase of 9.86 million shares from the month before. Overall, short interest for this stock has been relatively high since Culper Research released a scathing short report titled “Aterian (ATER): Bought from Felons & Fraudsters, Sold to You” in May of 2021. However, ATER also had a utilization rate of 100% since the beginning of March which means that short sellers will find it more difficult to find shares available to short.

These catalysts combined with positive momentum for the stock have combined to create a short squeeze attempt. Volume is expected to increase even more thanks to a new video from Zip Trader who analyzed the stock’s parabolic movement over the last week.

Given its current popularity, it’s worth noting that fundamentally ATER appears to be in a strong position especially after it’s annual report showed a 33.4% increase in revenue for a total of $247.8 million. This is partially due to the launch of 40 products throughout 2021. However, ATER’s net loss increased substantially from $63.1 million in 2021 to $236 million this year. This is due to a variety of factors including an increase in general and administrative costs and the extinguishment of debts totaling $138.9 million.

Long-term its important to recognize the edge ATER has thanks to its software which connects to e-commerce sites like Amazon – allowing the company to automate the lifecycle their product portfolio without missing out on opportunities like automating pieces of its fulfillment process. If ATER sells this platform as a service to other parties, the company could see substantial growth. But in terms of its current business model, ATER has also done well regarding sales growth. In 2019, sales reached $114.5 million before increasing to $185.7 million and finally peaking at $247.8 million in 2021.

In light of this, ATER stock is not only a popular meme stock but a potential long-term hold for bullish investors. Additionally, speculation of naked shorting during past short squeeze attempts were given footing by ATER’s CEO who shared the concerns of retail investors. This could similarly influence this short squeeze attempt as well.

According to @unusual_whales option flow, bears were in control near the close. In terms of unusual activity, a $154 thousand call was sold as well as another $128 thousand call. On the bullish side, there was nothing noteworthy. Premiums are overall bullish at 50.2% but with most call options’ expiry within four days, its clear that investors are not in ATER stock for the long haul.

Media Sentiment

@Mini_Tradez is looking for ATER stock price to reach $6 or more if ATER breaks above $5.75

@DonnieStocks thinks ATER stock price could hit $7 if ATER maintains its momentum

Technical Analysis

ATER stock price

ATER stock price is currently $5.32 but is showing bearish movement during premarket. ATER stock has a support at 5.25 and a secondary support near 4.79 as well as a main resistance at 6.39. The RSI is at 48 and the MACD is bearish while accumulation remains strong.

ATER stock price

With ATER stock trending on various platforms, many investors are looking for a move to new highs today. $5.75 was its after hours high on the 14th and 13th which means a move above this level would be significant.

ATER Stock Forecast

At the moment, ATER stock presents a strong set up for a potential short squeeze. While short interest is high, momentum from retail traders and bullish catalysts for the company could propel the stock to higher highs. Taking advantage of this opportunity, ATER announced that Anton von Rueden – Boosted Commerce‘s former COO and President – would be joining the company as COO as well.

Considering ATER’s history of massive runs, the stock could push higher if it breaks above $5.75, but it appears that most investors are watching ATER for the short term. If the short squeeze does not come to fruition, ATER stock holds some long-term promise that could make it worth a second look.

If you have questions about ATER stock and where it could be heading next feel free to reach out to us in our free alerts room!

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