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Riot Platforms Stock Rise: Is It Time for a Strategic Purchase?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
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Riot Platforms Inc.’s stock is on the rise following reports of increased Bitcoin mining activity and strategic expansions in the crypto sector, demonstrating improved investor confidence; on Wednesday, Riot Platforms Inc.’s stocks have been trading up by 7.93 percent.

Major Developments in the Cryptocurrency Arena

  • A recent rally has seen Bitcoin soaring past $99,000, climbing close to its all-time high. This surge has had positive knock-on effects on cryptocurrency-affiliated companies, with Riot Platforms being a notable beneficiary due to its bitcoin mining operations.

Candlestick Chart

Live Update At 11:37:21 EST: On Wednesday, December 11, 2024 Riot Platforms Inc. stock [NASDAQ: RIOT] is trending up by 7.93%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Riot Platforms saw an adjustment in its price target from Roth MKM, elevated from $16 to $20. This reflects the company’s strategic direction in becoming a pivotal player in digital infrastructure, going beyond just bitcoin mining.

  • JPMorgan has also increased its price target on Riot Platforms from $9.50 to $16, citing strong Q3 results and the broader positive trends in Bitcoin prices and network hashrate.

Financial Insights and Earnings Review

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.” Every trader knows that the stock market is fraught with volatility and uncertainty. The path to success is not a straight line; it requires patience, learning from errors, and adapting strategies accordingly. seasoned traders realize that each misstep is an opportunity to refine their approach.

Riot Platforms is like a superhero in disguise, battling through the cryptocurrency maze, dripping with data and dollar signs. It has not been a conventional journey for them. Just glance at the wreckage left by its negative ebit margin of -120.5 and an intimidating pre-tax profit margin of -42.4. But what seems like a fortress of losses is slowly revealing its hidden strength and strategic do over.

With a total revenue shy of $281 million and debt-to-equity ratio standing quite stable at 0.01, Riot Platforms seems securely perched to maintain operational efficiency. Perhaps, most illuminating is its current ratio of 5.7, indicating strong liquidity which hosts the ability to sail through any hazardous financial storm.

Among the charts splashed across trading terminals, a five-day picture of Riot Platforms’ stock movement reflects an unpredictable ballerina balancing precarious fortunes – from a low of $11.3 to a promising $12.16. Additionally, these electric performances sync with Riot’s key ratios, demonstrating an asset turnover of 0.1 and receivables turnover towering at 22.3.

Their cash flow also reveals tales of adventurous spending with a free cash flow of -$131.8M. However, issues such as the high operating expenses recorded at $129.9M suggest Riot is investing in future growth, but it must keep a wary eye on cash bleedings in pursuing vigorous growth.

Break Down of Strategic Moves and Media Impact

Bitcoin Surge’s Role

The substantial rise in Bitcoin’s value significantly impacts how market players like Riot Platforms are perceived. Riot’s business model largely revolves around its Bitcoin mining operations. Consequently, Bitcoin’s price directly affects Riot’s stock due to their mined bitcoin’s potential worth. This has certainly been the talk of the town!

The recent skyrocketing value of Bitcoin has induced a bullish sentiment, sending ripples of optimism across Riot Platforms’ stock. The towering rise of Bitcoin creates a drought economic gust, inflating prices for all those intrinsically parked in this sphere, including Riot. How Riot leverages this period of prosperity could be telling in the months to come.

Strategic Market Upgrades

Roth MKM’s price upgrade underscores Riot’s shift in strategy, evolving from solely being a Bitcoin miner to venturing into broader digital infrastructure. Roth MKM’s experts might be seeing Riot’s agile strides in expanding its horizons through digital infrastructure and energy assets – viewing it as a promising sign of far-reaching market influence and potential untapped growth corridors.

More Breaking News

JPMorgan’s Increased Optimism

JPMorgan’s uplifting price target heralds a bubbling optimism pivoting on Riot’s consistent delivery of strategic goals, combined with the backdrop of an improving digital currency landscape. The emphasis on solid Q3 results assures investors that Riot’s intricate dance with fluctuating bitcoin prices isn’t without precision and strategy. Riot’s underlying strengths lie in their adept ability to navigate tricky performance metrics, a skill that doesn’t go unnoticed by major analysts like JPMorgan.

Conclusion: Navigating the Path Ahead

As Riot Platforms steers through the curvaceous alleys of the cryptocurrency world, its tactical focus remains steadfast. While the road may appear riddled with financial confinables and contrary trader sentiments, Riot’s solidifying place in the digital infrastructure domain raises an intriguing question: Is this merely the beginning of their ascendance, or the sky the limit?

In a nutshell, Riot’s financial narrative pivots towards optimism, transcending its dependence on Bitcoin as its anchor to growth. Whether deciding to enter or stay put as a trader, it is essential to consider how Riot’s strategic ventures, industry overshadow, fiscal positions, and market events play a crucial role. 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.” A world within holds secrets for those with the vision to see beyond, and Riot Platforms may very well be writing the next intriguing chapter of its unfolding story canvas.

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.

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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”