Robinhood Markets, Inc.

Robinhood Markets, Inc. (NASDAQ: HOOD) provides a financial services platform. The company is focused on developing application for cash management such as stocks, exchange-traded funds, options, and cryptocurrency.

Key Highlights

• The company reported a YoY surge of 131.49% in revenue to USD 565.33 million in Q2FY21 (ended June 30, 2021) compared to USD 244.21 million in Q2FY20.
• HOOD reported a net loss of USD 501.67 million in Q2FY21 in contrast to a net income of USD 57.58 million in Q2FY20.
• On October 08, 2021, HOOD filed an acceleration request for a resale registration statement on Form S-1 (File No. 333-258474) and a first amendment to the Resale S-1 with the Securities and Exchange Commission (SEC) filed on August 05, 2021. The Resale S-1 was filed on behalf of certain Robinhood stockholders who received Class A common stock in conjunction with Robinhood's IPO due to the automatic conversion of Tranche I convertible notes.
• HOOD's gross margin for Q2FY21 was 93.3%, relatively higher than the industry median of 81.4%.
• Negative ROE of 112.8% in Q2FY21 vs. industry median of 4.5%.
• Stock is currently trading below its crucial short-term 50-day SMA support levels, a bearish indicator.
• Stock is currently leaning towards the lower end of the 52-week range of USD 33.25 to USD 85.00.
• HOOD's share price fell 1.60% in the past one month.

Technical Price Chart (as of October 19, 2021). Analysis by Kalkine

Conclusion: Considering the slight movement in the stock price in the past months, significant topline growth, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 41.70, as of October 19, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Marathon Digital Holdings, Inc.

Marathon Digital Holdings, Inc. (NASDAQ: MARA) operates as a digital asset technology company that mines cryptocurrency and focuses on the blockchain ecosystem and digital asset development.

Key Highlights

• Total revenue grew 102.47x to USD 29.32 million in Q2FY21 (ended June 30, 2021) from USD 0.29 million in Q2FY20 (ended June 30, 2020).
• Net loss for Q2FY21 increased to USD 108.88 million from USD 2.16 million reported in Q2FY20.
• Negative Net Margin of 2,059.8% whereas Peer’s Median stood at 3.6%.
• On October 18, 2021, the Chief Strategy Officer from BitOoda, Sam Doctor has joined MARA’s advisory board.
• On October 04, 2021, MARA's announced the 91% QoQ increase in Bitcoin production, owing to USD 100 million revolving line of credit from Silvergate Bank.
• Stock is currently trading above its crucial short-term as well as long-term 50-day and 200-day SMA support levels, a bullish indicator.
• Stock is currently leaning towards the higher end of the 52-week range of USD 2.06 to USD 57.75.
• MARA's share price has increased 141.21% and 2,203.85% in the past nine and twelve months, respectively.

Technical Price Chart (as of October 19, 2021). Analysis by Kalkine

Conclusion: The company's bottom-line performance deteriorated in Q2FY21 compared to the previous comparable period. Given the lackluster fundamentals, a significant surge in the stock price in the past twelve months, and lack of visibility in profitability, we recommend an "Avoid" rating on the stock at the closing price of USD 53.91, as of October 19, 2021.

*The reference data in this report has been partly sourced from REFINITIV. 

Canaan Inc.

Canaan Inc. (NASDAQ: CAN) is a technology firm that specializes on Application Specific Integrated Circuit (ASIC) high-performance computing chip design, chip research and development, computing equipment manufacturing, and software services.

Key Highlights

• The company reported a YoY surge of 507.30% in revenue to RMB 1.08 billion in Q2FY21 (ended June 30, 2021) compared to RMB 178.13 million in Q2FY20.
• CAN reported a net income of RMB 244.96 million in Q2FY21 in contrast to a net loss of RMB 16.79 million in Q2FY20.
• Effective September 20, 2021, CAN’s board approved a 12-month share repurchase program to buyback up to USD 20 million of its American Depository Shares (ADS) and Class A ordinary shares.
• CAN's net margin for Q2FY21 was 22.6%, significantly higher than the industry median of 6.4%.
• High ROE of 20.1% in Q2FY21 vs. industry median of 3.6%.
• Stock is currently trading below its crucial short-term as well as long-term 50-day and 200-day SMA support levels, a bearish indicator.
• Stock is currently leaning towards the lower end of the 52-week range of USD 1.85 to USD 39.10.
• CAN's share price fell 7.74% in the past month.

Technical Price Chart (as of October 19, 2021). Analysis by Kalkine

Conclusion: Considering the slight movement in the stock price in the past one month, significant topline growth, the surge in net income, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 7.39, as of October 19, 2021.

*The reference data in this report has been partly sourced from REFINITIV. 

Bit Digital, Inc.

Bit Digital, Inc. (NASDAQ: BTBT) is a bitcoin mining company operating in the US and Canada. BTBT's bitcoin mining operations, hosted by third-party suppliers, use specialized computers known as miners to generate bitcoins.

Key Highlights

• Total revenue grew 103.37x to USD 72.30 million in H1FY21 (ended June 30, 2021) from USD 0.69 million in H1FY20 (ended June 30, 2020).
• BTBT reported a net income of USD 34.45 million in H1FY21 in contrast to a net loss of USD 4.10 million in H1FY20.
• On October 12, 2021, BTBT entered into an agreement with Bitmain Technologies Limited to purchase 10,000 Bitcoin mining hardware.
• On September 30, 2021, BTBT announced the private placement of 13.49 million ordinary shares to institutional investors and offer of unregistered warrants (one warrant to purchase 3/4th of share) to purchase up to 10.12 million common shares to the investors for USD 5.93
• BTBT's EBITDA margin for H1FY21 was 46.3%, significantly higher than the industry median of 9.2%.
• High operating margin of 6.1% in H1FY21 vs. industry median of 2.1%.
• Stock trading between its crucial long-term as well as short-term support levels of 50-day and 200-day SMA levels.
• Stock is currently leaning towards the lower end of the 52-week range of USD 3.40 to USD 33.0.
• BTBT's share price fell 3.24% in the past six months.

Technical Price Chart (as of October 19, 2021). Analysis by Kalkine

Conclusion: Considering the slight movement in the stock price in the past six months, significant topline growth, the surge in net income, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 11.35, as of October 19, 2021.

*The reference data in this report has been partly sourced from REFINITIV.