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Is MARA’s Plummet a Buying Chance?

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
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MARA Holdings Inc. experiences a sharp decline as investors react to the news of disappointing third-quarter earnings reports and the unexpected resignation of their CFO. On Friday, MARA Holdings Inc.’s stocks have been trading down by -8.94 percent.

Key Developments Impacting MARA

  • Bitcoin’s recent value drop has influenced the entire crypto market, affecting stocks like Marathon Digital Holdings.
  • JPMorgan has adjusted MARA Holdings’ price target from $23 to $18, keeping a neutral rating.
  • The dip in Bitcoin prices has led to a noticeable decrease in the perceived value of cryptocurrency-related investments.
  • A widespread decline in the cryptocurrency market has seen companies such as Coinbase and Marathon Digital facing potential setbacks.
  • Bitcoin’s drop below $83K has broad implications on digital currencies that challenge related companies’ current valuations.

Candlestick Chart

Live Update At 17:03:14 EST: On Friday, March 28, 2025 MARA Holdings Inc. stock [NASDAQ: MARA] is trending down by -8.94%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

MARA Holdings Inc.’s Financial Snapshot

As millionaire penny stock trader and teacher Tim Sykes, says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This mindset is crucial for traders aiming to build long-term success. It emphasizes the importance of patience and the avoidance of high-risk maneuvers that promise quick returns. By consistently focusing on smaller, steady gains, traders can enhance their skills and grow their portfolios over time, ensuring a more sustainable and prosperous trading journey.

The earnings report and financial data reveal MARA’s performance and potential challenges. Revenue was approximately $656.38M, with an enterprise value touching $6.80B. The ebit margin reached 94.1%, and the ebitda margin hit 159.5%. These figures showcase a robust capability to generate income compared to its total revenue. However, a gloomy crypto market hints at challenges with maintaining such margins.

MARA’s revenue per share stands at 1.90, and its price-to-sales ratio is 7.19. The valuation metrics indicate it’s at a substantial valuation relative to sales, highlighting an above-market reliance on continuous growth which can be jeopardized by the roller-coaster crypto market. Furthermore, the company reports a current ratio of 4.9 and an asset turnover of 0.2, showing it has sufficient short-term assets but underutilizes its assets for revenue.

The incoming potential setbacks are related to the shifting Bitcoin prices. MARA and other related stocks have seen losses parallel to Bitcoin’s value trends. However, high market volatility and entries from institutional investors like JPMorgan signal the gathering of renewed opportunities, risking further valuation dips but offering prospective trades for risk-tolerant investors.

The Ripple Effect of Cryptocurrency News

Bitcoin’s Slump:

Bitcoin’s decline, dipping below $85,000, inflicted a harsh backdrop for key digital assets like MARA. As the largest cryptocurrency tumbled, it invariably set a predictable path for connected stocks. An observer might question: Why invest in stocks influenced heavily by a single asset’s movement? The sway of digital currency reflects larger global trends, emphasizing vulnerabilities inherent in crypto-linked businesses.

Revised Targets:

JPMorgan’s revision of MARA’s price target signifies caution. Lowering the target to $18 represents an anticipated downturn aligned with Bitcoin’s vacillations. Firm expectations envelop this decision, yet those within the market might interpret it as a call for a potential dip-buying opportunity. Sentiment around MARA pivots with cryptocurrency news cycles, reiterating a powerful yet precarious marriage between digital assets and speculative investment hunger.

More Breaking News

Market-Wide Declines:

The crypto market has seen sweeping declines, pulling down stalwarts like Marathon Digital Holdings. This correction phase for many market players hints at overvaluation, necessitating a repricing and resetting expectations. While it brings nervous jitters for some investors, experienced traders might view it as a calculated risk. They await the low point to maximize future profits as history has often favored savvy decision-making under pressure.

Stock Analysis:

Despite volatility considerations, MARA’s stock retains solid fundamentals. Key investments in holding digital assets, coupled with innovative transaction avenues, suggest a potential bounce-back. A balanced analysis between the colorful fluctuations of crypto prices and MARA’s strategic maneuvers remains indispensable. Investors must weigh between typical stock market ebb and flow and the cyclical flexing inherent to cryptocurrencies.

Investment Cues:

The narrative of upswing opportunities presents a valid case. While analysts express caution, the broader sector’s growth may offer expansion horizons. When measured moves align with market sentiment, volatility becomes less an obstacle than a passage toward future gains. Understanding interim shifts transfers to a robust appraisal context, prescribing a watchful stance amid tempestuous trends.

Conclusion

MARA’s recent dip intertwined with ongoing cryptocurrency market uncertainties signals a defining chapter. While JPMorgan’s target adjustment acts as a forewarning, astute market players might spot fertile ground. Anticipating a day when Bitcoin’s turnaround amplifies dependent stocks underlines a patient, strategic foresight particularly valuable during market depressions seasoned by subsequent surges. 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.” Patience, balance, and the power of informed speculation remain the trading compass.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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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 .

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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”