We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Marathon Digital Holdings ((MARA - Free Report) ) is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.
I recently told my investor group to buy MARA under $20 before the infamous "Bitcoin Halving" on April 20 because I believed that all the pessimism had been discounted since the stock had just fallen nearly 50%.
Fast forward six weeks and it seems like the stock is still stuck in the same old place.
And their quarterly report in early May didn't help assuage fears of the imminent "halving" of Bitcoin mining revenues.
Marathon came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of $0.02. This compares to a loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -400%. A quarter ago, it was expected that MARA would post earnings of $0.05 per share when it actually produced a loss of $0.02, delivering a surprise of -140%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Marathon Digital, which belongs to the Zacks Technology Services industry, posted revenues of $165.2 million for the quarter ended March 2024, missing the Zacks Consensus Estimate by 14.80%. This compares to year-ago revenues of $51.13 million. The company has topped consensus revenue estimates just once over the last four quarters.
Even with 99% topline and 59% EPS growth projected for this year, investors and analysts appear skeptical about how this premier Bitcoin miner will survive the current political and economic uncertainty as their "precious" pushes back toward new highs above $70,000.
Bottom line: For a company with strong projected growth, there appears to be a disconnect with the stock trajectory and the estimated revision momentum. Until the estimates stabilize, let's stay on the sidelines with MARA until we see an all-clear sign. The Zacks Rank will let us know.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bear of the Day: Marathon Digital (MARA)
Marathon Digital Holdings ((MARA - Free Report) ) is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.
I recently told my investor group to buy MARA under $20 before the infamous "Bitcoin Halving" on April 20 because I believed that all the pessimism had been discounted since the stock had just fallen nearly 50%.
Fast forward six weeks and it seems like the stock is still stuck in the same old place.
And their quarterly report in early May didn't help assuage fears of the imminent "halving" of Bitcoin mining revenues.
Marathon came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of $0.02. This compares to a loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -400%. A quarter ago, it was expected that MARA would post earnings of $0.05 per share when it actually produced a loss of $0.02, delivering a surprise of -140%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Marathon Digital, which belongs to the Zacks Technology Services industry, posted revenues of $165.2 million for the quarter ended March 2024, missing the Zacks Consensus Estimate by 14.80%. This compares to year-ago revenues of $51.13 million. The company has topped consensus revenue estimates just once over the last four quarters.
Even with 99% topline and 59% EPS growth projected for this year, investors and analysts appear skeptical about how this premier Bitcoin miner will survive the current political and economic uncertainty as their "precious" pushes back toward new highs above $70,000.
Bottom line: For a company with strong projected growth, there appears to be a disconnect with the stock trajectory and the estimated revision momentum. Until the estimates stabilize, let's stay on the sidelines with MARA until we see an all-clear sign. The Zacks Rank will let us know.