Crypto Stocks Struggle as Earnings Miss and Bitcoin Stabilizes

Recent reports reveal that crypto-related stocks like Marathon Digital and Riot Platforms are facing challenges, with significant stock price declines and disappointing earnings. Despite some analysts maintaining cautious optimism, the performance of these stocks raises concerns for potential investors.

Date: 28-09-2024

AI Rating: 4

Analysis of Crypto-Related Stock Performance

The report outlines the challenging environment for crypto-related stocks, particularly focusing on three significant players: Marathon Digital Holdings (MARA) and Riot Platforms (RIOT).

Marathon Digital Holdings (MARA)

MARA's stock has plunged over 20% in the past six months and is down more than 30% year-to-date (YTD). This severe decline coincides with the company reporting a quarterly loss of ($0.72) per share, which is notably worse than the expected loss of ($0.23). Additionally, its revenue fell short at $145.14 million compared to the anticipated $157.86 million.

Riot Platforms (RIOT)

RIOT has faced a similar downward trajectory, with its stock dropping nearly 40% in the past six months and down 60% from its 52-week high. The company also reported a loss of ($0.32) per share, doubling the expected loss of ($0.16), alongside a slight revenue miss at $70 million, a decline of 8.7% year-over-year.

Investor Sentiment and Future Outlook

Despite the current stock price struggles and disappointing earnings reports for both companies, analysts exhibit a cautious optimism. MARA holds a consensus Hold rating with a price target of $19.61, suggesting a potential upside of 21.5%. Meanwhile, RIOT has a Buy consensus with a price target of $16.60, indicating a potential upside exceeding 100%. This juxtaposition between underperformance and analyst optimism suggests that while there might be recovery potential, both companies require a significant move from Bitcoin to regain investor confidence.

Summary of Key Metrics

Marathon Digital (MARA): EPS: ($0.72), Revenue: $145.14 million (vs. $157.86 million expected)
Riot Platforms (RIOT): EPS: ($0.32), Revenue: $70 million (down 8.7% YoY)

The volatility in the performance of these stocks against Bitcoin reflects a broader market sentiment where traditional trading dynamics are disrupted by emerging financial instruments like Bitcoin ETFs.

Stocks: MARA RIOT