We recently compiled a list of the 10 Biggest Losers of This Week. In this article, we are going to take a look at where Riot Platforms Inc (NASDAQ:RIOT) stands against the other stocks.
Wall Street’s main indices all finished in the green during a shortened trading session this week, yet 10 companies–mainly technology stocks– still booked significant losses in their valuations. Let’s take a look at the extent of each company’s losses and the potential factors that could have dampened investor sentiment.
To come up with the biggest losers this week, we considered only the stocks that have at least $2 billion in market capitalization and $5 million in daily trading volume.
A computer engineer working in a futuristic office, programming algorithms to mine cryptocurrency.
Riot Platforms Inc (NASDAQ:RIOT)
Riot Platforms (RIOT) saw a 15-percent decrease in share prices in the past five trading days, finishing Tuesday at $11.67 apiece from the $13.09 reported last Wednesday, with analysts attributing its shares performance to a correction phase.
As a Bitcoin mining firm, Riot Platforms directly benefits from higher Bitcoin prices, which can lead to increased revenues and profitability.
According to analysts, Bitcoin’s halving event could be one of the primary factors hurting Riot Platforms’ shares, which has significantly increased operational challenges for miners.
The halving means that each Application-Specific Integrated Circuit (ASIC) miner needs to work twice as hard to mine the same amount of Bitcoin, but the anticipated price increase for Bitcoin has not occurred to balance the said challenges.
Riot’s Bitcoin production decreased 10 percent year on year last month, highlighting the operational inefficiencies and increased challenges the company faces due to the halving.
Overall RIOT ranks 4th on our list of the biggest losers of this week. While we acknowledge the potential of RIOT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RIOT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.