Why Are Marathon Digital Shares Sliding Premarket Amid Bitcoin's Breathtaking Rally?
Portfolio Pulse from Shanthi Rexaline
Marathon Digital Holdings, Inc. (NASDAQ:MARA) shares dropped in premarket trading despite reporting a significant year-over-year revenue increase of 452% to $156.77 million and reversing to a profit of 66 cents per share. The decline was attributed to an adjusted loss of 2 cents per share, missing analyst expectations of a 3-cent per share profit. The company also reported a 172% increase in Bitcoin production. The drop occurred amidst a broader Bitcoin rally, with Bitcoin reaching a new intraday high of $63,432.97.
February 29, 2024 | 12:17 pm
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Marathon Digital's shares fell 8.51% in premarket despite reporting a significant revenue increase and a shift to profitability, due to an adjusted EPS miss.
Marathon Digital's stock price decline is directly linked to its earnings report, where it missed adjusted EPS expectations despite significant revenue growth and increased Bitcoin production. The premarket stock price movement reflects investor disappointment over the bottom-line miss, overshadowing the positive revenue and Bitcoin production figures.
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