Pattern Group (PTRN) Stock Drops As Bear Cave Takes Aim: What To Know

Shares of Pattern Group Inc (NASDAQ:PTRN) are trading lower Thursday morning after short-focused research outlet The Bear Cave published a new report questioning the e-commerce company's business model and valuation. Here’s what investors need to know.

• PTRN is feeling the pressure from bearish momentum. Track the latest developments here.

What To Know: Pattern, which went public this year, pitches itself as an AI- and data-driven platform that accelerates brands on global online marketplaces. The Bear Cave argues the company is essentially an overhyped third-party Amazon seller, heavily focused on health supplements, operating in a low-margin, highly competitive space.

Benzinga has reached out to Pattern for comment on the report.

Citing Pattern's IPO filings, the report notes that roughly all of the company's revenue comes from selling on marketplaces like Amazon and that health and wellness products account for a majority of its inventory purchases. That dependence, combined with Amazon's ability to change terms or restrict sellers at will, represents a key risk, according to The Bear Cave.

The report also highlights industry concerns about the scalability of Amazon "accelerator" and "aggregator" models and points to past failures of large marketplace sellers. It flags litigation from Arlo Technologies, which has alleged Pattern failed to deliver on promised sales growth — allegations Pattern denies.

While Pattern has posted growing sales and positive net income, The Bear Cave concludes the company's multibillion-dollar valuation is driven more by hype than fundamentals and warns investors that leadership may be "more bark than bite."

Benzinga Edge Rankings: Benzinga Edge data underscores the negative momentum, flagging bearish price trends across short, medium, and long-term horizons.

PTRN Price Action: Pattern Group shares were down 4.72% at $14.63 at the time of publication on Thursday, according to Benzinga Pro data.

Currently, the stock is trading approximately 4.7% below its 50-day moving average and about 4.5% below its 200-day moving average. This positioning suggests a bearish trend in the medium to long term, as the stock has struggled to maintain momentum above these key technical levels.

Read Also: Why Is Meta Stock Trading Higher Today?

How To Buy PTRN Stock

By now you're likely curious about how to participate in the market for Pattern Group – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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