ATER - Aterian's Quarter Was Not Good Enough to Stop Its Decline
In early 2021, e-commerce company Aterian (NASDAQ: ATER) was flying high. Aterian had leveraged its artificial intelligence and data gathering algorithms to quickly and effectively produce and bring to market products to sell on websites like Amazon . Shares reached a high of $47.66 on Feb. 17 and at that point the stock was up 177% on the year, compared to the S&P 500' s 4% gain. It's been an entirely different story since then. At the time of this writing, Aterian is trading for $4.08 and is trailing the S&P 500 by about 95 percentage points year to date.
Image source: Getty Images
The big trouble began with Aterian's Q2 results, which were reported on Aug. 9. Year-over-year revenue growth slowed to 14%, following the previous four quarters where growth was between 44% and 96%. Additionally, contribution margin, net income, and free cash flow were all down from the year-ago quarter, and the company withdrew its guidance. These results were an abrupt change in direction for the company and the market responded harshly, with shares dropping 50%.
For further details see:
Aterian's Quarter Was Not Good Enough to Stop Its Decline