Shares of the tech-enabled consumer products company, Aterian Inc. (ATER) remained bullish on Monday, April 4, 2022. Adding a huge 46.78% in the regular session, the stock continued its uptrend into the after-hours with a further increase of 7.02%. Thus, surging to a value of $3.42 at the close of regular trading, ATER reached $3.66 in the following session.
ATER’s Big Move
On Monday, it seemed retail investors focused on a short squeeze in the tech stock ATER. Various factors combined supported the short squeeze to rally the stock by over 60% mid-day. Some of the noteworthy reasons included the latest shuffling of ATER’s board of directors. The company appointed Cynthia Williams, a seasoned e-commerce and technology executive on Friday to its board of directors. Ms. Williams after over a decade with Amazon and Altria Group each, recently joined Hasbro Inc. The latest appointment follows a row of other appointments that took place recently.
Other than that, most indices shot higher on Monday with Nasdaq reporting strong price action. Thus, excited about the new addition and positive market sentiment, investors led ATER on a bullish roll on Monday.
The E-commerce industry saw a boom in peak Covid-19 days. With consumers restricted to their homes, shopping online became a trend as well as a need. Leveraging the situation, the industry made some big jumps at the time. But as the woes of the pandemic are slowly declining, so are online sales and in turn e-commerce stocks. But that’s not all. Covid-19 enlightened many on the possibilities that exist in the market. Still, there are many worrisome factors impacting the market, including supply chain constraints, labor shortages, and rising inflation. Thus, the growth of a company in the industry relies on how it tackles the ongoing issues and leverages the endless possibilities.
What Does ATER say?
ATER so far has gathered some mixed reviews. The company itself provided guidance nothing short of disappointing. The company expects headwinds owing to supply chain and inflation pressure. With the further need of raising capital despite the current dilution, the company is in for a hard time. Furthermore, ATER stock price has also been hovering near its all-time-lows. Hence, the company unless takes some drastic measures is for sure under immense pressure presently. So far 2022 is seemingly presenting a gloomy picture for the company.
On Monday, ATER rallies big on a short squeeze taking place after the company recently appointed a new member to its board. While the stock continued to rise in the after-hours, the momentum had somewhat died down. Seemingly, the stock is posing for some profit booking if not corrections due to the gains.