Marathon Digital (NASDAQ: NASDAQ:MARA) stock price has taken a severe hit, plunging to $7.85 on Thursday, mirroring the ongoing Bitcoin sell-off and a broader pullback in American stocks. This downward trend is also noticeable in other Bitcoin mining companies such as Riot Platform and BitDigital (BTBT), which generate revenue from mining and selling Bitcoin.
The recent consolidation phase in Bitcoin's price has significantly affected these stocks. Notably, MARA had previously soared to above $28,000 before falling to around $26,000. A volume-supported move below the previous month's low of $24,800 could attract more short sellers.
Adding to the bearish sentiment, a death cross pattern was formed on September 28th when MARA's 200-day and 50-day moving averages crossed bearishly. This technical indicator often signals further declines in the stock's price.
Investors are now turning their attention to the upcoming earnings reports for Marathon Digital and other Bitcoin mining stocks. The report for Marathon Digital is scheduled for November 14th and could provide vital insights into the company's financial health amid these market fluctuations.
According to InvestingPro data, Marathon Digital has a market cap of $16.27B USD, a P/E ratio of 8.38, and a revenue of $6695M USD. The company's gross profit stands at $5226M USD, and it has an operating income of $2525M USD. This data, of course, is subject to changes due to the volatile nature of the market.
InvestingPro Tips suggest that Marathon Digital has high earnings quality, with free cash flow exceeding net income. It is also noted that the management has been aggressively buying back shares, indicating confidence in the company's future performance. There is also a significant return over the last week, which might be indicative of the stock's potential recovery. For more in-depth tips and insights, readers can visit InvestingPro which offers additional 7 tips on Marathon Digital and many other companies.
The upcoming earnings report, scheduled for November 1, 2023, according to InvestingPro, will provide further insights into the company's performance and potential future trajectory. The report is expected to be closely watched by investors, given the current market fluctuations and the impact on Bitcoin mining stocks. The company's fair value, as per InvestingPro, stands at $28.73 USD, which could be a key metric to watch in the coming weeks.
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