Why are GameStop (GME), Aterian (ATER) stocks trending?

Highlights

• GameStop Corporation (NYSE: GME) reported a net loss of US$61.6 million in Q2 of fiscal 2021.
• The GME stock soared 1052.46% YTD.
• The stock value of Aterian, Inc. (NASDAQ: ATER) plummeted 46.45% YTD.

The stocks of GameStop Corporation (NYSE: GME) and Aterian, Inc. (NASDAQ: ATER) were trending on Wall Street on September 9. The former fell more than 9 percent, while the latter traded flat in pre-market trading.

The GME stock declined 9.65 percent to US$179.62 at 9:12 am ET, a day after reporting quarterly earnings. On the other hand, ATER stock was priced at US$9.20 at 9:13 am ET, down 0.11 percent from the previous closing price.

Let dig into some details of the stocks.

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GameStop Corporation

GameStop Corporation is a Grapevine, Texas-based video retailer. The company focuses on consumer electronics items and operates as a distributor of gaming-related products. The company has reported its Q2 earnings for fiscal 2021 on September 8 after the market close.

The company reported net sales of US$1.183 billion in Q2, FY21, compared to US$942 million in the year-ago quarter. Its cash and restricted cash were US$1.78 billion at the end of Q2.

The gross profit of the company was US$320.9 million, compared to US$252.2 million in the Q2 of fiscal 2020. Its operating loss was US$58 million against a loss of US$85.6 million in Q2 2020.

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The firm reported a net loss of US$61.6 million, or US$0.85 per diluted share in the quarter ended July 31, compared to a loss of US$111.3 million, or US$1.71 per diluted share in the prior year's second quarter.

GameStop’s market cap is US$14.78 billion, the forward P/E one year is 9940.00and the EPS is US$-0.96. The GME stock rose 1052.46 percent YTD.

The highest and lowest stock prices of the company for the last 52-week were US$483.00 and US$5.87, respectively. Its share volume was 5,173,566 on September 8.

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Aterian, Inc. (NASDAQ: ATER)
Aterian, Inc. sells consumer products through its online platform. It acquires brands or forges partnerships with e-commerce companies to run the operations. It is headquartered in New York. The ATER stock has been rallying in recent sessions, attributed to a coordinated short squeeze by investors inspired by social media trends on platforms like Reddit, Twitter, etc.

The company’s net revenue surged by 14 percent YoY to US$68.18 million in Q2 of FY 2021, against US$59.8 million in the same quarter of the previous year. Aterian’s operating income was US$4.46 million against a loss of US$1.82 million in Q2 of FY 2020.

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The gross profit of the company was US$32.74 million, compared to US$27.60 million in the year-ago quarter. Its net loss came in at US$36.30 million, or a loss of US$1.23 per share, compared to a loss of US$2.93 million, or a loss of US$0.19 million in the prior year's second quarter.

Aterian’s market cap is US$336 million, the forward P/E one year is -4.06, and its EPS is US$-6.55. The stock value plunged 46.45 percent YTD.

The highest and lowest stock price in the last 52 weeks were US$48.99 and US$3.04, respectively. Its trading volume was 89,466,200 on September 8.

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Bottomline

Industry data show that consumer confidence has declined in August from July, suggesting that consumer spending may have decreased. It could be due to several factors, including market uncertainties and delta variant outbreak. Market experts, however, are optimistic of a swift recovery in the retail sector after the virus fears subside. The consumer discretionary sector has advanced around 14 percent YTD, underscoring the steady pace of retail recovery.