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why did aterian stock drop

by Mable Huels Published 3 years ago Updated 2 years ago

Meanwhile, between Sept. 13’s close and Oct. 22, ATER stock lost nearly 60% of its value. The plunge suggests that Aterian has become much weaker due to the federal government eliminating the stimulus at the beginning of September.

So what. On May 9, Aterian reported its financial results for the first three months of 2022. Revenue declined 13.3% to $41.7 million in the period due to supply chain issues across its product portfolio and deteriorating results from some of its recent acquisitions.May 10, 2022

Full Answer

What is the upside for Aterian's stock?

Their forecasts range from $12.00 to $50.00. On average, they expect Aterian's stock price to reach $20.40 in the next year. This suggests a possible upside of 363.6% from the stock's current price. View analysts' price targets for Aterian or view top-rated stocks among Wall Street analysts.

Why is Aterian stock down 71% year to date?

Aterian is facing new obstacles in 2021, with tough year-over-year growth comparisons and rising shipping costs that are pressuring profitability. The stock is currently down 71% year to date, trailing the NASDAQ Composite with its return of 15.2%.

Why is Aterian increasing its shares outstanding?

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.

What is Aterian's (ATR) price potential in the next year?

Their forecasts range from $12.00 to $50.00. On average, they expect Aterian's stock price to reach $20.40 in the next year. This suggests a possible upside of 363.6% from the stock's current price.

Is aterian a good investment?

ATER has an average analyst recommendation of Strong Buy. The company has an average price target of $15.13. ATER has an Overall Score of 66.

Will aterian go up?

On average, Wall Street analysts predict that ATERIAN's share price could reach $8.50 by Mar 9, 2023. The average ATERIAN stock price prediction forecasts a potential upside of 226.92% from the current ATER share price of $2.60. What is ATER's Earnings Per Share (EPS) forecast for 2022-2024?

Is Stellantis a buy now?

Consensus Rating. Stellantis has received a consensus rating of Buy. The company's average rating score is 2.70, and is based on 7 buy ratings, 3 hold ratings, and no sell ratings.

Is Topicus a good stock to buy?

Topicus.Com Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Topicus.Com Inc..

Should I sell my aterian stock?

Is ATER stock a buy right now? 4 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Aterian in the last twelve months. There are currently 1 hold rating and 3 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "buy" Aterian stock.

Is bottled water a good investment?

For your answer, yes, in 2021, investing in a bottled water business will still be profitable and lucrative!! The bottled water business is the production of drinking water within containers. The profit garnered from this business depends on different factors.

Is Stellantis doing well?

Stellantis' adjusted operating income in North America rose 85% to $12.9 billion (11.4 billion euro) in 2021 from selling more large SUVs and pickups and higher pricing. It posted a 16.3% margin in North America compared to FCA's 8.9% margin in 2020.

Will Stellantis stock go up?

Stock Price Forecast The 22 analysts offering 12-month price forecasts for Stellantis NV have a median target of 22.95, with a high estimate of 35.80 and a low estimate of 15.44. The median estimate represents a +71.24% increase from the last price of 13.41.

Is Stellantis a good dividend stock?

STLA's annual dividend yield is 8.54%. STELLANTIS NV's dividend is higher than the US industry average of 3.99%, and it is higher than the US market average of 3.82%.

Is CSU stock a buy?

a buy or a sell? In the last year, 16 stock analysts published opinions about CSU-T. 11 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock.

Key Points

Management sees high uncertainty in the near term as the business wrestles with rising inflation and freight cost in the supply chain.

What happened

Aterian (formerly known as Mohawk Group Holdings) ( NASDAQ:ATER) reported second-quarter earnings results that came in well below the consensus analyst estimate. The stock was down 38.7% at 10:53 a.m. EDT on Monday.

So what

On the surface, the Q2 results don't look bad. Revenue grew 14% year over year to $68 million. Gross margin ticked up to 48% from 46.2% in the year-ago quarter.

Now what

Given the uncertainty, management withdrew from offering guidance for near-term financial results. Sarig called the supply chain constraints "a global crisis" with container rates up 500% compared to last year. While Sarig sees a path out of this mess, he says it won't be smooth sailing:

How much did Aterian lose in 2021?

The Aterian stock reported a $36.3 million net loss in Q2, 2021, significantly higher than the net loss of $2.9 million in Q2 2020.

What is the market cap of Ater 2021?

The stock has a market cap of $171.34 million and an 802,352 average trading volume. Investors eyeing ATER stock need to do deep research before adding this stock to their portfolio.

What happened

Aterian (NASDAQ: ATER) is continuing to make huge gains after emerging as a new short-squeeze favorite among investors on Reddit's WallStreetBets discussion board and other online communities. The stock closed out the daily session up 28.6% and was up another 4% in after-hours trading as of 5:15 p.m. EDT.

So what

Aterian's share price surged amid excitement surrounding its AI-powered e-commerce services initiatives and strong momentum for meme stocks at the beginning of the year. However, it's been prone to volatile trading in subsequent months and hasn't managed to hold gains for long.

Now what

Some investors have scored huge wins this year by backing meme stocks including GameStop and AMC Entertainment as they went on to enjoy massive short-squeeze rallies, and it's possible that similar action will push Aterian's share price significantly above current levels.

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Why is ATER not doing accretive M&A?

The investment thesis of ATER doing accretive M&A deals may no longer work because the valuation has contracted significantly. It's currently trading at 2021 P/S 1.3X. Maybe this is the reason why they are evaluating new financing structures to accelerate M&A strategy.

Who are the competitors of ATER?

The main competitors we see for ATER are FBA acquirers. These companies primarily acquire brands that sell products on Amazon and grow them after acquiring them. This is akin to ATER's M&A strategy. One of the most dominant FBA acquirers and ATER direct competitors in our eyes is Thrasio. According to FT, as per recent funding rounds, Thrasio's valuation sits at $6BN with around $500 million in Sales. This equates to P/S of 12X, while ATER trailing P/S in 2020 is 2.7X and forward 2021 P/S around 1.30X. Do keep in mind Thrasio is a private company; hence we have limited financial data available and rely on FT's estimate. To that end, valuation catch-up could be an interesting play for ATER investors. Before we indulge in these wishful thoughts, let's try to decode possible reasons for Thrasio's valuation premium.

How many brands does Thrasio own?

Thrasio has acquired 100+ brands already compared to ATER, which currently has 13. FBA brands are now a trend and have seen their multiples expand. Not only that, but amidst COVID, sales revenues of FBA brands increase exponentially due to lockdowns. All in all, the value of the Thrasio portfolio is significantly higher than ATER at this stage.

What is Black Hat SEO attack?

Black Hat attack is when competitors/others put fake negative reviews to push down product SEO'S. They said Amazon is investigating it and will be resolved soon. This begs the question - can this happen to other products too?

Is Thrasio a brand?

Thrasio has converted some of its products into brands. One notable example is Angry Orange, which also sells directly to customers. In a fragmented consumer product market, a product with solid branding carries a moat of its own. Hence, premium valuation stemming from Thrasio's product lineup also makes sense. The majority of ATER products are brandless rely more on social proofing in reviews and ratings on Amazon. However, they have started to explore the D2C channel with their homelab brand. In the future, we can also expect them to explore these channels further and, therefore, catch up with Thrasio's valuation. One recent example was the acquisition of Squatty Potty, which will offer them brand equity (similar to Angry Orgage) and open up retail and D2C channel.

What is the effect of flywheels on the stock market?

This could have led to a further capital market flywheel effect (stock price appreciation), allowing them to grow aggressively via share issuance as the market cap/valuation expands.

Is accretive M&A difficult?

Accretive M&A deals are much more difficult to achieve after price corrections.

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