3 Blockchain Stocks You Won’t Find Any Profits In

Everyone raves about blockchain technology because of its decentralized nature, wide application and security. And companies working on this technology have flourished in recent years. But as macroeconomic concerns continue to weigh on the stock market, fundamentally weak blockchain stocks Block ( SQ ), Marathon Digital ( MARA ), and Riot Blockchain ( RIOT ) are expected to remain under pressure. Therefore, we think it might be wise to avoid them. Read on….

Blockchain is well known as the technology behind Bitcoin and other major cryptocurrencies and digital assets. It is a form of ledger technology that stores records in a decentralized manner, making them difficult or impossible to change. The technology has gained attention because of the security it provides. And companies opening in the blockchain space have flourished in recent years.

Unfortunately, the stock and crypto markets have been under significant pressure since the beginning of the year, leading to a sell-off in blockchain stocks. The Fed’s several rate hikes this year have not had much effect in curbing rising inflation. With inflation still near multi-decade highs, the Fed is expected to announce further aggressive rate hikes to curb inflation.

Due to the Fed’s hawkish monetary policy, the stock market is expected to remain under pressure in the coming months. The riskier cryptocurrency space is also likely to be under pressure, with many experts believing that the downtrend in crypto will continue for a long time.

Although blockchain has several applications other than powering cryptocurrencies and digital assets, blockchain stocks will continue to be affected if cryptocurrencies fall further.

Amidst this backdrop, we think it might be wise to avoid fundamentally weak blockchain stocks Block, Inc. (SQ), Marathon Digital Holdings, Inc. (MARA), and Riot Blockchain, Inc. (RIOT).

Block, Inc. (SQ)

SQ is a technology company that creates tools that enable merchants to accept card payments and provide next-day reporting, analytics and settlement. The company focuses on financial services. The building block also consists of Square, Cash App, Spiral, TIDAL and TBD54566975.

SQ’s total net income fell 5.9% year over year to $4.40 billion for the second quarter ended June 30, 2022. The company’s operating deficit came in at $213.77 million, compared to operating income of $124.99 million in the same period last year.

The net loss also came in at $208.01 million, compared to a net income of $204.02 million in the year-ago period. In addition, there was a loss per share of $0.36, compared to an EPS of $0.40 in the same period last year.

Analysts expect SQ’s EPS for the quarter ending September 30, 2022, to fall 35.1% year-over-year to $0.24. Revenue for fiscal 2022 is expected to decline 0.3% year-over-year to $17.61 billion. Over the past year, the stock has fallen 75% to close last trade at $63.71.

SQ’s weak fundamentals are reflected in its POWR Ratings. The share has an overall D rating, which corresponds to a sell in our proprietary rating system. The POWR ratings are calculated by considering 118 different factors, with each factor weighted optimally.

It has a D grade for stability, sentiment and quality. It is ranked #90 out of 106 F-rated stocks Financial services (business) industry. click here to see the other ratings of SQ for Growth, Value and Momentum.

Marathon Digital Holdings, Inc. (MARA)

MARA is a digital asset technology company primarily focused on cryptocurrency mining in the blockchain ecosystem and operates as a digital asset generator in the United States

MARA’s revenue fell 15% year-over-year to $24.92 million for the second quarter ended June 30, 2022. Operating loss increased 61.6% year-over-year to $178.21 million. The company’s net loss increased 76% year over year to $191.65 million. Its loss per share also increased 60.5% year over year to $1.75.

Analysts expect MARA’s loss per share for the current quarter to increase 81.8% year-over-year to $0.40. Revenue for the quarter ending September 30, 2022, is expected to fall 41.3% year-over-year to $30.34 million. It failed to beat consensus EPS estimates in each of the last four quarters. Over the past year, the stock has fallen 69.7% to close last trade at $10.87.

MARA’s POWR rankings reflect this bleak outlook. It has an overall rating of F, which means strong sales in our proprietary rating system.

It has an F rating for growth, value, stability, sentiment and quality. To see the rating of MARA for Momentum, click here.

Riot Blockchain, Inc. (RIOT)

RIOT is involved in cryptocurrency mining and the overall blockchain system through various investments. The company has deployed approximately 8,000 application-specific integrated circuit miners at its cryptocurrency mining facility in Oklahoma. In addition, subsidiary Tess Inc. seeks to develop a blockchain-based escrow service for wholesale telecom operators.

For the second fiscal quarter ended June 30, 2022, RIOT’s net loss came in at $366.33 million, compared to net income of $19.33 million. Adjusted EBITDA loss came in at $65.17 million, compared to adjusted EBITDA of $2.38 million. The company’s adjusted loss per share came in at $0.50, compared to adjusted EPS of $0.03.

For the current quarter, RIOT’s EPS is expected to remain negative. It failed to beat Street EPS estimates in three of the trailing four quarters. Over the past year, the stock has lost 77.7% to close last trade at $6.52.

RIOT’s weak outlook is reflected in the POWR ratings. It has an overall F rating, which equates to strong sales in our proprietary rating system.

It has an F grade for stability, sentiment and quality and a D for value. It is ranked #79 of 81 stocks in the Technology – Services industry. click here to see the other reviews of RIOT for Growth and Momentum.

SQ shares were trading at $61.63 per share on Tuesday morning, down $2.08 (-3.26%). So far this year, SQ has fallen -61.84%, compared to an increase of -18.67% in the benchmark S&P 500 over the same period.

About the Author: Dipanjan Banchur

Since he was in primary school, Dipanjan was interested in the stock market. This led to him taking a master’s degree in finance and accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing new trends in the financial markets.

More…

The mail 3 Blockchain Stocks You Won’t Find Any Profits In appeared first StockNews.com