The stocks of Amazon, MARA, COIN and RIOT

Amazon (AMZN) 

Jeff Bezos can benefit from an excellent stock market recovery of the stock of his largest company (Amazon), which touches €87.60 with a jump of 0.77% in 24 hours, which becomes 4% when looking at the last month. 

Following its pandemic period performance, AMZN (Amazon) suffered from the fragility of its business model when this gave way to normality.

Without bothering with the macroeconomic picture in the long run, the stock has a good growth outlook as the foundation on which it rests is solid. 

Amazon’s stock rose between 2020 and 2021 thanks to excellent e-commerce and cloud computing numbers touching +108% in just five months. 

Over the past year, AMZN, has returned 43% of value and despite the stock split, interest in the stock has been waning.

The corporate situation is similar to that of a giant struggling due to, among other things (but not limited to), mega contracts signed with the National Football League (NFL) for streaming rights of Thursday Night Football.

Interest in short positions on the stock has risen 10% in the last thirty days BUT, the BEARISH sentiment continues to weigh on AMZN. 

In early February, Amazon will release earnings data and will serve to revise estimates on the stock, especially by analysts. 

The target is set between US$125 and US$145, a challenging target but one that is within Amazon’s grasp. 

Marathon Digital Holdings Inc (MARA)

Most estimates for this year say the digital asset tech company will be able to earn earnings of $1.01 a share. 

Marathon Digital Holdings Inc (MARA) boasts a market cap of $627.27 million, a PMM of $5.96 and a 200-day PMM of US$9.61. 

Two years ago, Marathon had 8,115 Bitcoin in its portfolio of which 4,794 were in an investment fund.

Analysts at B. Riley Financial Inc in a report released Tuesday express optimism about earnings estimates up to 2024. 

In particular, L. Pipes gives a “neutral” rating to the stock and a price target of US$8.00 and full-year earnings at US$1.32 a share.

Other analyses all concur with a rosy future for the stock, HC Wainwright being one of the few against the trend who proceeded to change the price target from US$35.00 to US$20.00. 

A spectrum of the distribution of shares brings out how nearly 40% of the shares to date are in the hands of institutional investors (897).

Coinbase (COIN)

US exchange platform Coinbase (COIN), after a year in which it lost nearly 90% of its value, is raising its head again this week.

The stock touches €39.66 appreciating 1.69% in the 24 hours but what is striking is how much it has recovered in the last week or 25.5%.

When COIN was listed on 14 April 2021, it opened at $381, a long way from what it is doing today but the gradual increase in interest rates and the continuous debacles in the crypto world have been the combination that has triggered the gradual flight of capital and above all the loss of value in the stock market. 

Brian Armstrong, CEO of the company had warned at the time about the onset of a new “crypto winter” due to the various failures of Celsius, Three Arrows Capital and FTX that drew the attention of a judiciary intervention. 

If the Federal Reserve were to leave rates unchanged over time or take a direction of less forceful monetary policy interventions, it would certainly benefit Coinbase according to most analysts.

According to insiders, Armstrong’s company (COIN) will face a loss of $1.4 billion this year.

The operations already underway to bring COIN back to higher levels also involves cutting staff.

Layoffs had already started last year and the company cut 2,110 resources in three tranches.

On a positive note on the credit quality front comes from the agreement signed by Coinbase with the New York State Department of Financial Services (DFS). 

The agreement, which in figures translates into a $100 million partnership, will focus on extensive customer monitoring, which could negatively affect revenue in the short run but in the long run, will translate into an advantage.

Riot

Riot Platforms Inc. (RIOT) is a BTC mining company that also offers hosting services through its data center. 

The stock touched $5.57, recording a performance of +3.71%, confirming the trend of the past six months that has seen the stock recover 15%.

RIOT has returned to investor appetite in part because of the latest collapse in Bitcoin prices. 

Looking ahead, the stock is once again generating optimism with the company steadily investing in its chain, while recent operational updates point to an improved outlook.

Now the real driver leading to the recovery of pre-crisis value could come from BTC itself but it is still too early to make predictions.