Shares of Aterian (NASDAQ:ATER) crashed on Tuesday. The e-commerce company saw its valuation surge after emerging as a potential short-squeeze candidate, but big gains over the last couple of weeks also opened the door for a dramatic pullback. The stock ended today’s trading down roughly 39%.
There doesn’t appear to be any major business-specific news behind the sell-off today, but it’s not surprising to see the company’s share price post volatile swings on the heels of gaining some traction as a meme stock and short-squeeze candidate. Investors from Reddit’s WallStreetBets and other investing-focused social media communities bought shares in the e-commerce company in order to trigger a squeeze, but it looks like the push is now collapsing after an impressive surge.