Group 1 - Applied Digital Corporation (NASDAQ:APLD) is expected to have a breakout quarter, making it a stock worth owning despite its current losses [1] - The company designs, builds, and operates data centers that support high-performance computing and AI workloads, which have gained traction among cryptocurrency miners converting their operations [3] - Recent trends show that stocks of converted crypto miners, including Applied Digital, have experienced significant volatility, with declines ranging from 50% to 57% from peak to trough [3] Group 2 - While APLD shows potential as an investment, there are other AI stocks that may offer greater upside potential and lower downside risk [4]

Core Insights - Riot Platforms, Inc. (RIOT) is expected to report its fourth-quarter 2025 results on March 3, with a strong earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the last four quarters, averaging a 160% earnings surprise [2] Revenue Expectations - The Zacks Consensus Estimate for RIOT's revenue in Q4 2025 is $157.4 million, reflecting a 10.1% increase from the previous year, driven by growth in Bitcoin Mining and Engineering revenues [3] - Bitcoin Mining revenues are projected at $136 million, indicating a 7.6% year-over-year growth, while Engineering revenues are expected to reach $21.3 million, representing an 85% increase from the prior year [3] Strategic Developments - The company has been actively developing its data center business for bitcoin mining, including the acquisition of 67 acres adjacent to its Corsicana site to create a 1 GW utility-load data center campus, which is anticipated to enhance technical engagement with major customers [4] - Recent growth in the engineering business, particularly through ESS Metron and E4A Solutions, is expected to create synergies and expand the data center development program, contributing positively to revenue [5] Earnings Outlook - The consensus estimate for loss per share is 22 cents, a decline from a profit of 44 cents reported in the same quarter last year, reflecting the impact of the company's transformation efforts and acquisitions [6] - The company has announced the development of two new buildings at its Corsicana campus, adding 112 megawatts of critical IT data center capacity, which is expected to enhance future capabilities [7] Earnings Prediction Model - The current model does not predict an earnings beat for RIOT, with an Earnings ESP of 0.00% and a Zacks Rank of 1 (Strong Buy), indicating that while the potential for an earnings beat exists, it is not strongly supported by the current data [8]

Bitcoin miner MARA Holdings has entered a strategic partnership with Barry Sternlicht's Starwood Capital Group to convert its existing mining sites into data center infrastructure for artificial intelligence and cloud computing. MARA shares jumped approximately 17% in after-hours trading following the February 26 announcement. Joint Venture Targets 2.5 GW Capacity The two companies will jointly develop, finance, and operate data center projects across MARA's existing portfolio. Starwood Digital Venture ...

Bitcoin Surges As ETF Inflows Jump. Trump-Linked Miner Reports Results. | Investor's Business DailyTRENDING: [Rare Earth Stocks To Watch]----Cryptocurrency stocks are generally surging this week. powered by bitcoin's ETF-fueled rally to near $70,000 on Wednesday. Stablecoin issuer Circle and bitcoin miner Hut 8 diverged on their Wednesday results, which prompted a 32% spike for CRCL. Trump family-linked miner American Bitcoin rose on its Thursday-morning results. After the stock market close, MARA Holdings, ...

Riot Platforms ( RIOT ) has been one of the Bitcoin ( BTC-USD) miners I have followed closely but kept at arm's length for much of the past market cycle. I have only covered RiotI started out as a crypto investor a decade ago and remain deeply active in the crypto space. I cover Bitcoin miners, digital asset treasuries, and crypto ETFs majorly, but I also seek alpha in tech equities, especially in emerging sectors like quantum computing and orbital intelligence. I have initiated coverage as a first analyst ...

Core Insights - Riot Platforms, Inc. is expected to report a quarterly loss of $0.22 per share with projected revenue of $158 million, making this earnings release significant for investors [1][6] - Despite the anticipated revenue increase, there is a consensus of a year-over-year decline in earnings, which will impact the stock's short-term price movement [2][6] Financial Ratios - The company's price-to-earnings (P/E) ratio is approximately 34.33, indicating high investor expectations for future growth [3][6] - The price-to-sales ratio stands at about 9.46, reflecting the market's valuation of its revenue [3][6] - The enterprise value to sales ratio is around 10.31, while the enterprise value to operating cash flow ratio is negative at approximately -11.62, indicating potential challenges in cash flow generation [4][6] Debt and Liquidity - Riot's debt-to-equity ratio is approximately 0.25, suggesting a relatively low level of debt compared to equity, indicating less reliance on debt financing [5][6] - The current ratio is about 1.47, showing the company's ability to cover its short-term liabilities with its short-term assets, providing a mixed picture of financial health [5][6]

Core Insights - Riot Platforms, Inc. is a leader in the Bitcoin-driven industry focused on developing large-scale data centers and bitcoin mining applications, with an earnings conference call scheduled for March 2, 2026 [1][4] Company Overview - Riot's vision is to be the most trusted platform for powering and building digital infrastructure, aiming to positively impact various sectors, networks, and communities [3] - The company operates Bitcoin mining facilities in central Texas and Kentucky, with engineering and fabrication capabilities located in Denver and Houston [4] - Riot is expanding into data center development, reinforcing its role as a foundational builder in the digital economy [4]

Core Viewpoint - Activist investor Starboard Value is urging Riot Platforms to accelerate its AI data center initiatives, highlighting the company's potential to benefit from the increasing demand for artificial intelligence infrastructure [1]. Group 1: Company Positioning - Riot Platforms is positioned to leverage its substantial power capacity for AI computing as the profitability of bitcoin mining remains unstable [1]. - Starboard Value owns approximately 12.7 million shares of Riot and emphasizes that Riot's Texas sites, Corsicana and Rockdale, can provide about 1.7 gigawatts of power suitable for AI data center operations [1]. Group 2: Market Dynamics - The letter from Starboard indicates a trend among cryptocurrency miners to pivot towards AI and high-performance computing (HPC) as a response to the volatile nature of bitcoin mining profits [1]. - Starboard notes that AI and HPC companies are increasingly looking to cryptocurrency miners for immediate power capacity for their data centers [1]. Group 3: Strategic Recommendations - Starboard advises Riot to focus on securing high-quality, investment-grade tenants, such as hyperscalers, rather than merely pursuing the highest lease rates [1]. - The recent agreement between Riot and Advanced Micro Devices is viewed as a positive development, although it is characterized as a minor proof-of-concept deal [1].

Core Insights - Riot Platforms, a leading U.S. Bitcoin mining company, is facing pressure to transition to Artificial Intelligence (AI) due to declining mining profitability [1][2] - Activist investor Starboard Value is advocating for a quicker shift to AI data centers, highlighting the potential for increased profits [2][3] Financial Performance - Riot's Bitcoin mining profits have been decreasing, with the cost to mine one Bitcoin reaching approximately $89,000, while Bitcoin prices are trading between $60,000 and $70,000 [5] - Wall Street anticipates a loss of $0.22 per share for Riot in Q4 2025, with mining profitability hitting a 14-month low in January 2026 [6] - In November 2025, Riot mined 428 Bitcoins, a 14% decrease from the previous year, and in December, it mined 460 Bitcoins, which is 11% lower than December 2024 [8] Strategic Shift - Starboard has identified Riot's two large Texas sites, Corsicana and Rockdale, which provide 1.7 gigawatts of power, as ideal for AI and high-performance computing [3] - If Riot leases power and space effectively, it could potentially earn over $1.6 billion in annual profit [3] - Riot's CEO has acknowledged that leasing data center space can yield higher profits compared to Bitcoin mining and has begun exploring AI applications [4] Industry Trends - The trend of Bitcoin miners pivoting to AI hosting is gaining traction, with at least eight other publicly traded Bitcoin miners also making similar transitions [10]

Core Viewpoint - The market anticipates Riot Platforms, Inc. (RIOT) will report a year-over-year decline in earnings despite higher revenues for the quarter ending December 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Riot Platforms is expected to report a quarterly loss of $0.22 per share, reflecting a year-over-year change of -150% [3]. - Revenues are projected to be $157.36 million, which is an increase of 10.4% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Riot Platforms is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -12.36%, suggesting a bearish sentiment among analysts [11]. Earnings Surprise History - In the last reported quarter, Riot Platforms was expected to post a loss of $0.19 per share but instead reported earnings of $0.26, resulting in a surprise of +236.84% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Industry Comparison - In contrast, Moody's (MCO) is expected to report earnings of $3.46 per share for the same quarter, indicating a year-over-year change of +32.1%, with revenues expected to reach $1.88 billion, up 12.2% from the previous year [17][18]. - Moody's has a higher Most Accurate Estimate leading to an Earnings ESP of +0.83% and a Zacks Rank of 2 (Buy), suggesting a strong likelihood of beating the consensus EPS estimate [18][19].