WEBULL

A Look At Marathon Digital Holdings (MARA)’s Valuation As AI Data Center Pivot Follows Crypto Rebound

Simply Wall St · 5d ago

MARA Holdings (MARA) is back in focus after Bitcoin related stocks rebounded and the company moved ahead with its shift toward AI focused, high performance computing data centers, including a planned majority stake in operator Exaion.

See our latest analysis for MARA Holdings.

That pivot is landing against a mixed price record, with a 1-day share price return of 6.86% and 7-day gain of 13.50% contrasting with a 30-day share price decline of 9.80% and 90-day drop of 47.57%. The 1-year total shareholder return sits at a 44.47% loss and the 3-year total shareholder return remains positive at 84.17%, suggesting short term momentum is rebuilding after a tougher year.

If MARA’s move toward AI linked infrastructure has caught your eye, this can be a good moment to see what else is moving in high growth tech and AI stocks.

So with MARA shares still sitting on a 1 year loss and trading around $10.59, yet with analysts setting higher price targets and options activity heating up, is there a genuine entry point here or is future growth already reflected in the price?

Most Popular Narrative: 52.8% Undervalued

At a last close of $10.59 versus a narrative fair value of $22.41, the gap is wide enough to get attention and raise questions about the underlying assumptions.

Continued transition to an asset-heavy, vertically integrated business model, with a focus on owned low-cost renewable energy assets, enables MARA to achieve sector-leading energy efficiency and cost structure, supporting superior net margin expansion over time as legacy, expensive contracts roll off.

Read the complete narrative.

Curious what has to happen for that valuation to hold up? Revenue still grows, margins tighten sharply and the future earnings multiple stretches to unusual levels. Want the full blueprint behind those numbers?

Result: Fair Value of $22.41 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you still have to weigh the heavy dependence on bitcoin mining and the high capital needs of the asset-heavy buildout, either of which could quickly pressure margins and cash flow.

Find out about the key risks to this MARA Holdings narrative.

Build Your Own MARA Holdings Narrative

If you see the data differently or just want to test your own assumptions, you can build a custom MARA view in a few minutes: Do it your way.

A great starting point for your MARA Holdings research is our analysis highlighting 4 key rewards and 6 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If you are serious about sharpening your watchlist, do not stop at one company. Use the Screener to spot clear setups before everyone else does.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.