Aemetis, a renewable fuels producer, has seen a surge in sales due to the $1 billion Delta Air Lines deal. However, the stock is not necessarily a buy given the biofuel blending mandates, unsustainable valuations and weak fundamentals which could cause AMTX’s shares to retreat.Headquartered in Cupertino, California, Aemetis Inc. (AMTX) is a renewable , fuel, and biochemicals company focused on acquiring, developing, and commercializing breakthrough technologies that substitute petroleum-based products and reduce greenhouse gas emissions. The stock has gained 432.4% over the past year and 67.7% over the past month, driven by the company’s continued efforts to replace carbon-intensive transportation fuels with renewable energy and its recent deal with U.S. carrier Delta Air Lines Inc. (NYSE:) to provide sustainable aviation fuel (SAF) worth over $1 billion. AMTX also introduced the Carbon-Zero manufacturing method, which aims to decarbonize the transportation industry using today’s infrastructure.

Its shares are down 24.7% during the past six-months. Closing Friday’s trading session at $19.7, AMTX’s stock is trading 28.2% below its 52-week high of $27.44, which it hit on April 08, 2021. A Biden’s administration has also been considering cutting the country’s biofuel blend standards. This is due to a decrease in gasoline consumption since the pandemic. In the short term, this, together with its high valuations and weak financials could result in a drop in shares.

Here’s what could influence AMTX’s performance in the near term:

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