Pre-Q4 Earnings: Should MARA Stock be in Your Portfolio?

Core Viewpoint - Marathon Digital Holdings, Inc. (MARA) is expected to report a loss of 32 cents per share for Q4 2024, a decline from a loss of 2 cents in the same quarter last year, with revenues projected at $191 million, reflecting a 21.8% year-over-year growth [1][2]. Earnings Estimates - No upward revisions have been made to the earnings estimates for the upcoming quarter in the past 30 days, with one downward revision noted, worsening the consensus estimate from a projected loss of 30 cents to 32 cents [2]. - The earnings surprise history shows that MARA has surpassed the Zacks Consensus Estimate in three of the past four quarters, with an average negative surprise of 136.1% [4][5]. Earnings ESP and Zacks Rank - MARA has an Earnings ESP of -57.48% and holds a Zacks Rank of 3 (Hold), indicating a lesser chance of an earnings beat this time [6][7]. Revenue Generation Strategy - The company's revenue in the upcoming quarter is likely to benefit from its dual approach to Bitcoin mining, which combines revenue generation with strategic asset accumulation, allowing for lower-cost Bitcoin production [8]. - MARA retains a significant portion of the Bitcoin it mines, positioning itself for potential price appreciation over time [9]. Stock Performance - Over the past three months, MARA's stock has declined by 39%, contrasting with a 39% rally in the industry, while competitors like Riot Platforms, Inc. (RIOT) and HuT 8 Corp. (HUT) saw declines of 6% and 25%, respectively [10]. Investment Considerations - MARA is viewed as a cautious hold amid mixed performance, with strategic expansion in mining capacity and cost-effective acquisitions supporting long-term growth, although near-term profitability remains challenging [14].