Aterian Offers Short-Squeeze Possibilities and Much More

Want to ride a wild horse in the stock market? If so, then I dare you to check out New York City-based Aterian (NASDAQ:ATER) stock and assess your risk tolerance.

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Let me tell you now, ATER stock is definitely not for the faint of heart.

Just to give you a quick primer, Mohawk Group (which used to trade as MWK stock) re-branded itself as Aterian in late April of this year. It’s still the same company, just with a different name.

To put it as simply as possible, Aterian is a technology-enabled consumer products company. The company uses machine learning, data analytics and natural language processing to facilitate product sales on various online marketplaces.

As an investor, you might be interested in Aterian’s potential for growth as a leading technology-powered consumer-product platform.

As a short-term trader, however, you may find ATER stock intriguing as a possible short-squeeze target among social-media users.

A Closer Look at ATER Stock

Here’s something spooky. On Sept. 21, 2021, the Aterian share price landed at exactly $13. Some folks might say that’s an unlucky number.

The shareholders were certainly lucky that day, though. ATER stock jumped nearly 11% on Sept. 21, without any company-specific news catalyst to justify a price move of that magnitude. But then, this isn’t unusual. If you’re going to invest in Aterian, prepare for daily volatility, including price moves of 10% or more sometimes.


Speaking of big price moves, the early 2021 rally in ATER stock was truly stunning. Believe it or not, the stock rocketed from $17 at the start of January, to a 52-week high of $48.99 in February.

Chasing the stock at that price turned out to be a costly move, however. After topping out, the Aterian share price slid during the next half-year, even touching $3 in August.

Yet, during the darkest days, miracles can happen. It looks like ATER stock is already starting to stage a comeback in mid-September. Could the rebound to $13 be the start of something bigger and better?

Want Results? You Got ’em

This section will be dedicated to the folks who are less interested in Reddit-fueled short squeezes, and more focused on businesses that execute. Don’t worry – we’ll check in on the social-media sentiment momentarily.

Both short-term traders and long-term investors should be glad to learn, however, that Aterian is firing on all cylinders, fiscally speaking.

We’ll offer up the company’s second-quarter 2021 results as evidence of this. Here are the bullet points, for your convenience:

  • Net revenues grew 14% year-over-year, to $68.2 million
  • Gross margin improved year-over-year, from 46.2% to 48%
  • Operating income totaled $4.5 million – a vast improvement over the year-earlier quarter’s operating loss of $1.8 million
  • Brightening balance sheet, as Aterian’s total cash balance increased by $26.9 million from March 31, to $61.9 million on June 30
  • 19 new products launched in the second quarter

Not too shabby, considering the second quarter’s challenges to the global e-commerce market.

These included, “a global supply chain crisis, inflation and an extreme shift in consumer behavior due to the opening of brick and mortar stores after the relaxation of COVID-19 related restrictions,” according to Aterian co-founder and CEO Yaniv Sarig.

Dreams of Memes

So, we’ve established that Aterian is a worthy business to invest in. How about something to pique the interest of the short-squeeze crowd, though?

No problem – here’s something to whet your appetite.

On Sept. 21, a quick glance at the Fintel Short Squeeze Screener and Leaderboard, reveals that the U.S. stock with the highest likelihood of experiencing a short squeeze is ATER.

At that time, the stock reportedly had a short interest of 35.72% of the total float.

Plus, not long ago, InvestorPlace contributor Alex Sirois surveyed some tweets and concluded, “The general consensus is that Aterian should somehow retest former highs well above $30 earlier this year.”

The Bottom Line

There’s definitely a groundswell of support in progress on social media. @Pineapplestocks, for example, says that there’s a “Decent bullish setup here!!” in ATER stock.

Meanwhile, @JWildeDT is bracing traders for a share-price move “to $20” with a rocket-ship emoticon.

Clearly, the meme-stock trade is alive and well – and for all I know, Aterian could be on deck for a short squeeze of epic proportions.

All in all, ATER stock is a fast little runner that traders can have fun with. At the same time, Aterian is a serious company with the fiscal stats to prove its shareholder value.

So, pick your time frame: hold it, or just trade it.

Either way, you can find something to like about ATER stock.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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