Over the course of the past week, the Aterian Inc (NASDAQ:ATER) stock has been in the middle of a damaging downward spiral and has slumped by as much as 29%. Considering the sheer scale of the decline, it may be the right time to take a look at the anatomy of the selloff.
Last week the company announced its financial results for the second fiscal quarter and that proved to be a disappointment as the numbers fell short of analysts’ expectations. Experts have noted that the company is facing some fresh challenges this year due to the problems related to year on year comparisons.
In addition to that, it has also been pointed out that the rise in shipping expenses has also had an adverse effect on Aterian’s profitability. In this context, it is also necessary to note that the stock has performed poorly this year and has recorded a significant drop so far in 2021.
Although the revenues went up 14% year on year to hit $68 million, it fell well short of analysts’ estimates of $94 million. Yaniv Sarig, the Chief Executive Officer of Aterian stated that it was a difficult quarter for e-commerce due to a crisis in the worldwide supply chain.