Needham analyst John Todaro has maintained their neutral stance on MARA stock, giving a Hold rating yesterday.
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John Todaro has given his Hold rating due to a combination of factors impacting Marathon Digital Holdings Inc. (MARA). The company reported a slight revenue beat but fell short of the adjusted EBITDA expectations, missing the analyst’s estimate significantly. This discrepancy was largely attributed to increased expenses linked to MARA’s strategic expansion initiatives.
Furthermore, MARA is shifting its focus towards high-performance computing (HPC) and artificial intelligence (AI) by repurposing ASICs for inference tasks. However, the company has not fully committed its data center resources to HPC co-location agreements, which raises concerns about the effectiveness of this strategy. While there is potential for growth through its collaboration with MPLX, which offers a substantial capacity pipeline, the lack of clear commitment to HPC/AI workloads has led to a cautious stance, resulting in the Hold rating.
In another report released yesterday, Clear Street also maintained a Hold rating on the stock with a $16.00 price target.
Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MARA in relation to earlier this year.