It seems as though every week there is a new company in the news because of Reddit. Traders on investing forums are always on the prowl for the next GameStop (NYSE:GME). And there have been a few short squeeze plays that have come to my attention thanks to Reddit, but I rarely trade based on chatter alone.

I always try to dig deeper into Reddit targets to identify if there is some fundamental reason for shares to move higher. One name I believe has real potential beyond its meme stock status is Aterian (NASDAQ:ATER), a campaign management and real-time marketing software company.

ATER stock has been on quite the roller-coaster ride.

Shares were trading for around $7 in early December. They rapidly shot up to a high just below $49 in two and a half months before reversing. By late August, ATER stock had lost nearly 94% of its value, dropping to a low near $3. In mid-September, shares hit a high above $19. Currently, they are trading below $8. So, you can see what I mean.

Aterian Resolves its Debt Issue

Unlike some other high-growth small-cap stocks that crashed recently due to general market sentiment, Aterian underwent a solvency issue. The company had some liquidity issues due to the sudden acceleration of debt due. This was triggered by breaches in the company’s financial covenants due to its poor performance in the second quarter. The company cited supply chain issues as a consequence of last year’s shutdowns as a main cause for the ugly Q2 results.

On Sept. 23, Aterian announced it was able to come to a deal with its lender, High Trail. Aterian will pay $66.3 million in term-loan debt, plus interest in shares, and the remaining $25 million has been pushed to mature in 2023. The company’s financial covenants have been restructured to better reflect the current operating reality.

No doubt this saga has been bad for the company. However, now that it has been resolved, ATER stock can get on the road to recovery. Shares have been beaten down so much that I believe additional risk is already well reflected in the stock price. The business still holds plenty of potential, and analysts are targeting profitability as early as 2022.

Affiliate Marketing Platform DealMojo Looks Promising

The company recently launched a beta version of DealMojo, its affiliate marketing platform. Affiliate marketing is a form of digital marketing in which an affiliate drives traffic to a company’s products or services. They can do this via a wide range of digital platforms like email, blogs, social media and YouTube, to name a few. If a buyer purchases a product, the third-party affiliate earns a commission off that sale.

DealMojo facilitates the connection between high-performing affiliates and high-paying Amazon (NASDAQ:AMZN) sellers. Amazon already has an existing affiliate marketing program, but it’s a bit like the wild, wild West. Both low-traffic and high-traffic affiliates are able to easily participate.

The DealMojo platform allows sellers to find top affiliates and offer them bonus commissions. Sellers and affiliates can also communicate on the platform to collaborate on higher-quality content, making it a win-win for all involved.

The Bottom Line on ATER Stock

Every once in a while, the Reddit crowd stumbles upon an interesting investment opportunity, and I believe ATER stock is one. The company has been expanding rapidly with revenue growing 62% last year to $185.7 million. And analysts expect revenue to grow another 46% this year.

Using trailing 12-month revenue, ATER stock is trading at a valuation of just over 1 times sales. That’s cheap for a growth stock.

I believe the company’s biggest challenges are behind it. Aterian was able to successfully negotiate with its creditor, so it can now focus on the road ahead. ATER stock is something to keep on your watch list.

On the date of publication, Joseph Nograles held a long position in GME. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joseph Nograles is a part-time freelance copywriter focused on the financial industry. He has worked in a wide variety of industries from tech to consulting with one of the “big four.” He has always enjoyed analyzing businesses and has been a CFA charterholder for nearly a decade now.