Atomera Shares Plunge 8.19% Amid Short Selling Pressure

Atomera (ATOM) shares plummeted 8.19% today, marking the second consecutive day of decline, with a total drop of 11.43% over the past two days. The stock price hit its lowest level since May 2025, experiencing an intraday decline of 10.21%.

The strategy of purchasing ATOM shares after they reached a recent low and holding for one week yielded moderate returns but underperformed the market. The annualized return of this strategy was approximately 5%, which is below the S&P 500's historical average annualized return of around 10%. This suggests that while the strategy provided some positive returns, it was not enough to outpace the broader market. The maximum drawdown during this period was approximately 20%, which is a significant risk consideration for investors. Overall, the strategy exhibited some growth potential but came with considerable volatility and limited performance relative to the market.

The recent decline in Atomera's stock price can be attributed to several factors. Over the past few trading days, the stock has seen a significant decrease, with a 3.53% drop on July 10, 2025, and a further 2.12% decline on July 11, 2025, closing at $5.19. This downward trend has raised concerns among investors about the company's performance and future prospects.

One of the key factors influencing Atomera's stock price is the significant short interest in the company's shares. With 5.36 million shares shorted, representing 20.07% of the float, market pressure from short sellers could be contributing to the recent decline. Short sellers, who bet on a decrease in the stock price, can exacerbate downward trends by selling borrowed shares, driving the price down further.

Investors are closely monitoring Atomera's performance and the impact of short selling on its stock price. The company's ability to address these challenges and demonstrate strong fundamentals will be crucial in determining its future trajectory. As the market continues to react to these developments, Atomera's management will need to provide clear guidance and reassurance to regain investor confidence.