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MARA Holdings (MARA) Draws Buyers Despite A Downgrade, Is It Still A Bargain?

Simply Wall St · 17h ago

MARA Holdings (MARA) has been in focus after a 6.9% jump to US$12.45 on heavy volume, even as JP Morgan shifted to an Underweight rating and took a more cautious stance.

Set against that reaction, MARA Holdings now trades at US$13.24, with a 1-day share price return of 13.75% and a 7-day share price return of 10.52%. However, the 1-year total shareholder return is down 27.61%, while the 3-year total shareholder return is up 52.71%. This mix points to short term momentum building on a more uneven long term record as investors reassess growth potential and risk after the recent rally.

Scan how other Bitcoin and AI infrastructure plays are moving by checking the hand picked 18 cryptocurrency and blockchain stocks alongside MARA Holdings after this sharp reaction to the JP Morgan downgrade.

The recent spike in MARA Holdings can read like a vote of confidence in its Bitcoin and AI infrastructure push, or just a swing in sentiment. The valuation work starts with separating those two stories.

Most Popular Narrative: 27% Undervalued

On the most followed view of MARA Holdings, a fair value of $18.13 sits well above the last close at $13.24, which frames the recent bounce as investors reacting to a stock still trading below that narrative anchor.

MARA's strategic expansion into AI infrastructure and partnerships with leading AI and grid management companies positions the firm to benefit from the adoption of artificial intelligence and the demand for high-performance, energy-efficient compute. This is likely to unlock new, recurring revenue streams outside traditional bitcoin mining. Ongoing global digital transformation and heightened enterprise focus on data sovereignty and cybersecurity are driving demand for hybrid, sovereign-edge infrastructure. MARA's geographic diversification and partnerships with governments and energy companies, especially in emerging markets, are expected to open up new addressable markets, reducing reliance on U.S. operations.

See why 162 investors see MARA Holdings as 27% undervalued.

Result: Fair Value of $18.13 (UNDERVALUED)

Still, the MARA Holdings story leans heavily on bitcoin mining economics and high ongoing capital spend. This could pressure cash flow if conditions turn less favourable.

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

Another View: Pricing MARA Holdings Off Sales

The earlier fair value story for MARA Holdings leans on long term earnings potential. On simple sales based pricing, the picture looks very different. The stock trades on a P/S of 6.4x, compared with 4.3x for peers, 3.8x for the wider US Software group and a fair ratio of 1.6x that the market could eventually gravitate toward. That premium points to valuation risk if sentiment cools before the business model shift shows through in the numbers.

See what the numbers say about this price — find out in our valuation breakdown.

NasdaqCM:MARA P/S Ratio as at Sep 2026
NasdaqCM:MARA P/S Ratio as at Sep 2026

Next Steps

So after all these mixed signals around MARA Holdings, do you want to rely on the crowd or test the story yourself? Move quickly, review the numbers, and pay close attention to the 2 important warning signs.

Looking for more MARA Holdings style ideas?

If you only stop at MARA Holdings, you risk missing other potential opportunities with different risk profiles and return drivers that might fit your goals better.

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.