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Riot Platforms: Can Earnings Momentum Sustain?

Ellis HobbsAvatar
Written by Ellis Hobbs
Reviewed by Jack Kellogg Fact-checked by Tim Sykes

Riot Platforms Inc.’s stock trajectory was significantly influenced by positive market sentiment following an upbeat earnings report, suggesting strong operational performance and future growth potential. On Friday, Riot Platforms Inc.’s stocks have been trading up by 7.85 percent.

Latest News Impacting Riot Platforms

  • A recent Needham analyst has adjusted Riot Platforms’ price target upwards to $16 due to promising signs at the Needham Growth Conference. The company’s strides in high-performance computing (HPC) and a robust balance sheet stand out.
  • Amid a crypto market surge, Bitcoin’s price rally has positively impacted stocks like Riot Blockchain, thanks to their digital asset exposure. Bitcoin has recently surpassed the $96,000 mark.
  • Riot Platforms mulls over a strategic shift as it evaluates harnessing the 600 MW from its Corsicana Facility for AI/HPC applications, putting its Phase II Bitcoin mining on hold.

Candlestick Chart

Live Update At 11:37:40 EST: On Friday, January 24, 2025 Riot Platforms Inc. stock [NASDAQ: RIOT] is trending up by 7.85%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Overview and Insights

In the world of trading, success hinges on strategic decision-making and disciplined risk management. It’s crucial to abide by proven principles to navigate the volatile markets effectively. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” This encapsulates the essence of a resilient trading mindset. By swiftly mitigating losses, letting winning trades continue to generate returns, and maintaining discipline to avoid overtrading, traders can enhance their chances of long-term profitability. Implementing these practices can be the cornerstone of a prosperous trading career.

Riot Platforms, Inc. is experiencing a fascinating phase. The company sits at a crossroad with its strategy and earnings hinting at complexities. After a giant step to weigh AI/High-Performance Computing (HPC) possibilities, Riot is bracing for a potential shift in its revenue streams. The move can diversify cash flow and shield it from Bitcoin market volatility.

Riot’s financial statements reveal some key metrics that draw the big picture. Their revenue for the last term stands at close to $280.7M. Yet, hefty expenses result in negative income, showing a net income loss of about $154.3M for the recent quarter. Their gross margin sits at a modest 26.1%, while their debt levels are manageable, due to a total debt to equity ratio of 0.01. What’s intriguing is the current ratio at 5.7, meaning Riot has substantial current assets over liabilities—a sign of solid short-term financial health.

Charting out their stock trajectory provides interesting revelations. Notably, Riot’s closing price has been climbing from $10.46 on Jan 2, 2025, to $14.02 on Jan 23, 2025. Trading sessions show minor fluctuations but generally follows an upward momentum, driven mainly by Bitcoin’s soaring valuation. Blockchain miners benefit significantly when bitcoin prices surge, and Riot Platforms is no exception.

More Breaking News

From Wall Street’s perspective, positive appraisals like the Needham analyst’s raised price target reinforce investor interest. Riot’s balance sheet flexibility could further bolster investor confidence, especially with HPC prospects aligned with technological winds in AI.

Evaluating the Strategic Shift and Market Dynamics

Riot Platforms’ contemplation of funneling substantial energy reserves into AI and HPC at the Corsicana Facility marks a bold turn. Experts and cryptocurrencies alike are closely watching Riot’s ventures. Bitcoin mining, Riot’s core, has its fluctuations chiefly tied to bitcoin’s price ebb and flow, but AI and HPC can provide more consistent inflows, offering stability amid volatility.

The cryptocurrency market, currently bullish with surging major digital assets, is a backdrop for Riot’s fluctuating position. Bitcoin not only nipped past $96,000 but is climbing higher, inducing optimism among cryptocurrency stocks tied to its fate. Such a rally typically ignites enthusiasm among investors, buoying valuations.

However, another positive development is the evolving regulatory landscape. The Securities and Exchange Commission (SEC) is drafting a crypto regulatory framework. Such transparency can dispel uncertainty and bolster institutional confidence in crypto assets and companies like Riot Platforms.

Conclusion

Riot Platforms is navigating evolution while straddling the highs and lows of the crypto world. Its potential pivot towards AI/HPC reflects the company’s drive to future-proof itself amidst bitcoin’s capricious domain. As Bitcoin prices gallop to new heights, and analysts predict even brighter prospects, Riot’s upcoming assessments and strategic decisions will be critical. Could it be a new dawn for Riot where AI and HPC open avenues to long-term predictable revenue? Traders and stakeholders are keenly watching, understanding that in this volatile market, as millionaire penny stock trader and teacher Tim Sykes says, “The goal is not to win every trade but to protect your capital and keep moving forward.”

Riot Platforms is a tale of strategy, adaptation, and market dynamics—a compelling script still unfolding. But how the company weathers the winds with R&D, AI investments and seizes its market opportunities remains to be seen. Will Riot’s pivot reinvigorate its performance and stock price over time? Jeopardizing or itself, Riot’s calculated responses chart a narrative worth following. The timeline ahead, filled with tech synergies and market shifts, invites intrigue and opportunity.

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 .

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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”