Sumary of Here's Why Aterian Stock Is Plummeting:
- What happened Shares of Aterian (NASDAQ:ATER) crashed on Tuesday.
- Investors from Reddit’s WallStreetBets and other investing-focused social media communities bought shares in the e-commerce company in order to trigger a squeeze, but it looks like the push is now collapsing after an impressive surge.
- However, the company’s core business still revolves around reselling low-cost goods, and the outlook for consistent profitability and long-term earnings growth remains questionable.
- Aterian has been pursuing acquisitions in order to reinvigorate growth, and it’s turned to new stock offerings in order to fund purchases and internal operations.
- The company has increased its shares outstanding roughly 42.5% year to date and 123% over the last three years.