timothy sykes logo

Stock News

Riot Platforms Stock: A Roller Coaster Journey?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Riot Platforms Stock: A Roller Coaster Journey? Thumbnail

Riot Platforms Inc.’s stock decline on Friday, with a trading decrease of -7.33 percent, is likely influenced by the company’s recent news on operational challenges and cautious market sentiment surrounding cryptocurrency investments.

Crypto Market Impact:

  • Shares of Riot Platforms tumbled following a broad decline in the cryptocurrency market, where Bitcoin and other major cryptocurrencies saw a drop in value.
  • A potential investor shake-up looms, as D.E. Shaw’s acquisition of a stake in RIOT could push for significant corporate changes.
  • The entire blockchain industry, including Riot, is reeling from Bitcoin’s price reduction, chipping away at mining company profits.

Candlestick Chart

Live Update At 14:31:53 EST: On Friday, February 21, 2025 Riot Platforms Inc. stock [NASDAQ: RIOT] is trending down by -7.33%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Riot’s Financial Status and Q3 Report:

“Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This principle is essential for traders who are looking to amass wealth through stock trading. As millionaire penny stock trader and teacher Tim Sykes, says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” By adhering to this strategy, traders can mitigate risks and ensure steady growth in their trading portfolios without succumbing to the allure of quick wins that often lead to significant losses.

Riot Platforms Inc., a prominent Bitcoin mining company, experienced a wild ride in recent months. The performance of Bitcoin continuously weighs on the company, as evident from a string of tough financial quarters. In its Q3 report of 2024, Riot revealed plummeting net income from continuing operations at approximately negative $154.36M. Despite generating revenue of $84.78M, rising costs lead to heavier losses.

Their balance sheet shows assets of over $2.92B with noteworthy cash and cash equivalents totaling $355.71M. However, consistent negative cash flows remain concerning, with net investment purchases depleting cash positions. The reality of operational costs is reflected in the financial measures, yet Riot maintains a healthy cash position for now with $428.38M.

A deep dive into key ratios underscores the intense burden felt by Riot. A negative EBIT margin of -120.5 signals operational inefficiencies, coupled with a gross margin at a positive 26.1. But with the ongoing struggle in profitability, questions loom about the sustainability of these margins.

More Breaking News

Investors often focus on these metrics as they try to decipher the future path for Riot Platforms. Given current dynamics, the company’s resilience remains under scrutiny. With key financial indicators profoundly impacted by crypto price fluctuations, stakeholders question the long-term viability unless cost management aligns better with income generation.

Drastic Price Falls Amplifying Uncertainty:

Crypto instability has been pervasive, with the fall of Bitcoin sending shockwaves across the market, affecting key players like Riot Platforms. It’s not just about the shares; it’s about survival. The significant pre-market hits faced by crypto-trading companies underscore this uneasy reality. Riot Platforms, with its focus on blockchain and crypto-mining, finds its stocks heavily influenced by these narratives.

Dwindling Bitcoin prices indicate reduced profitability for mining operations, sending tremors through contingent stocks. News revolving around external players, such as D.E. Shaw’s interest, introduces potential regulatory shifts that could inspire operational changes. Such corporate overhauls may reshape Riot’s business direction, addressing current operational discrepancies.

The crypto ecosystem appears vulnerable, vacillating with market announcements and government policies. As steep declines continue, excitement seems to retreat, with traders cautiously managing their positions on volatile stocks.

Conclusion: Assessing the Path Forward

The ebb and flow of the crypto seas influence Riot Platform’s current financial environment. While possessing a solid asset base, their reported losses and financial struggles bring forth significant questions. Bitcoin’s fluctuating value serves as the bellwether for these shifts, nudging crypto companies like Riot towards potential structural changes.

Yet, the crypto world isn’t static. Just like the ocean’s waves, it consistently maneuvers through highs and lows. Riot Platforms, with robust revenues, retains the ability to weather this storm with organizational adjustments and changes to their trading strategies. 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.” This mindset facilitates adaptation with the undulating nature of the market. The narrative is a roller coaster, yet with careful management and adaptation, the ride could smoothen over longer cycles.

Amidst Bitcoin’s instability, Riot maintains a stronghold, navigating this volatile territory. But as the waves rock the vessel back and forth, observers keenly watch whether Riot can ride out the storm or succumb to these tides.

This content is produced using automated systems designed to deliver timely stock news. All material is reviewed by our editorial team and is provided solely for informational and entertainment purposes. It does not constitute professional investment advice. For additional details, please refer to our [Terms of Service]

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:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply

* 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”