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Riot Platforms Stock on Shaky Grounds: Is a Recovery in Sight?

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Written by Timothy Sykes Reviewed by Jack Kellog Fact-checked by Ellis Hobb
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Riot Platforms Inc.’s stock is experiencing significant pressure due to concerns over operational challenges and market conditions affecting the cryptocurrency sector, and on Tuesday, Riot Platforms Inc.’s stocks have been trading down by -6.72 percent.

Mixed Fortunes in the Digital Asset Universe

  • The cryptocurrency market has displayed significant volatility with digital assets including Bitcoin slipping below $88,000 after a stellar run past $93,000.
  • The market index dipped by 1.6%, reflecting a broader downturn in US stock indexes, pushing Riot Platforms Inc. lower amidst the turbulence.

Candlestick Chart

Live Update At 17:02:31 EST: On Tuesday, November 26, 2024 Riot Platforms Inc. stock [NASDAQ: RIOT] is trending down by -6.72%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Recent Earnings Overview: Riot Platforms Stumbles

As millionaire penny stock trader and teacher Tim Sykes says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” Trading is not just about making profits; it’s about learning from each experience, whether good or bad. Traders need to maintain a resilient attitude, understanding that success is built on both triumphs and setbacks. By learning to adapt and refine their methods through each experience, traders can significantly enhance their trading strategies over time.

Riot Platforms has encountered financial turbulence recently. In its latest earnings report, the company revealed challenging metrics. Riot recorded a negative gross margin of 26.1%. This figure hints at deeper profitability issues despite the company’s revenue of $280.68M. Curiously, Riot’s revenue per share stands at $0.84, struggling against the expected benchmarks.

The key ratios echo the financial strain. The EBIT margin is a shocking -120.5%, and pretax profit margin is -42.4%. Numbers don’t lie: Riot’s financial health is fragile. It showcases a pattern reminiscent of past challenges for tech firms navigating volatile markets. The bearish indicators underscore investor hesitance.

Yet, amid these fiscal clouds lies a silver lining—an operating cash flow of -$56.33M seems daunting, but Riot’s current ratio of 5.7 reflects potential short-term liquidity strength. Still, long-term liabilities might cast a shadow over this bright spot.

Expounding the News Articles: Shadows Over Crypto-Valleys

Bitcoin Tumbles, Taking Market Players Along

Bitcoin’s dramatic slip set a somber tone. This isn’t the first time high-flying crypto counts losses overnight. Imagine an eagle clipped mid-flight; Riot’s fortunes dipped alongside Bitcoin. The digital currency’s plunge to below $72,000 accompanied by a broader waxing decline across digital assets took a toll on linked stocks—Riot wasn’t spared. As one’s expectation of surging crypto wealth wanes, the juxtaposition against steady rising stock indexes adds fuel to a fiery debate: stability in traditional markets versus volatile digital gambles.

Overflowing Crypto Volatility

Besides Bitcoin’s hiccup, varied trends across the crypto space created whirlwinds of uncertainty. Ethereum and other digital assets swung hesitatingly between gains and losses. Such see-saw dynamics inevitably caused ripples affecting companies deeply enmeshed in crypto ventures. As broad crypto markets shrank by 1.4%, the optimistic projections earlier in the year transformed into cautious re-evaluations.

More Breaking News

Financial Metrics: Coughing amid Cracks

Diving deep into Riot Platforms’ numbers reflects a complex tapestry of strengths meeting stark weaknesses. While boasting total assets around $2.92B, the restraints of debt and amortization continue to burden. Net income reflects a challenging position, having fallen by $154.36M. Seemingly colossal, stock-based compensations of $30.56M nurture discussions about executive focus. Asset turnover at 0.1, and a discouraging return on assets at -8.44, portray a landscape overshadowed by inefficiencies.

The balance sheet sings a mixed melody: Accumulated depreciation, massive at -$471.2M, juxtaposes against sizeable total equity of $2.74B. It reminds one of an intricate game board. Here, outcomes hinge on decisions yielding unexpected cards affecting this tech juggernaut’s journey.

Vibrant Crypto Ecosystem Amidst Declines

While digital currencies launched into new territories, gleaming brightly against traditional equities, Riot’s latest financial snapshot wavered. The question remains: can enthusiasm for digital assets rescue its sagging fortunes?

Cryptocurrency’s capricious nature feeds both excitement and wariness. Riot’s entwined fate with crypto draws curiosity—will innovative strategy lift it into the stratosphere or mire ambitions amidst harsh corrections?

Conclusion: Navigating the Crypto Crossroads

Riot Platforms stands at a critical junction. The tensions between profitability, crypto volatility, and financial metrics nudge stakeholders to ponder carefully on what lies ahead. As challenges mount up, innovation and clarity may pave the escape route toward solvency.

In conclusion, Riot Platforms juggles complex dynamics, navigating financial headwinds amid technological exploration. Traders grapple with apprehension and potential rewards—awaiting the next strategic move in an ever-evolving playbook of digital enterprise. As millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.” This trading mindset highlights the importance of patience and strategic foresight in the rapidly shifting landscape of digital ventures.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”