-
Why Bitmine Immersion Technologies Stock Tumbled by Nearly 11% Today
Key Points
On Thursday, an ongoing cryptocurrency rout and an analyst's deep price target cut affected Bitmine Immersion Technologies (NYSEMKT: BMNR). The crypto company's shares sank by almost 11% in value that day, a far steeper fall than the 1.6% drop endured by the S&P 500 index.
Down on crypto
The gloom that has settled on the Cryptoverse in recent days extended to Bitmine, which is a holder of digital currency -- most notably its favored asset, Ethereum.
This is all well and good when such assets are thriving, but currently, that's not the case. Increasing fears that the Federal Reserve (Fed) won't cut interest rates in December are leading many investors to ditch all manner of cryptocurrencies. Like others, Ethereum has taken it on the chin, so it's little wonder those folks are increasingly downbeat about Bitmine.
Compounding this was that price target chop, enacted by B. Riley's Fedor Shabalin on Thursday morning. The analyst significantly cut his Bitmine fair value assessment to $47 per share from his previous $90. Interestingly, this doesn't make him a Bitmine bear, as he maintained his buy recommendation on the stock.
Time to mine a bargain?
Cryptocurrencies are always volatile plays, as are the companies that invest in them. Of the major blockchains, though, Ethereum has above-average potential due to its utility (and renown) as a suitable platform for decentralized applications (dApps). Considering that, the Bitmine sell-off on Thursday might feel a bit overdone and could present a "buy on weakness" opportunity.
Should you buy stock in Bitmine Immersion Technologies right now?
Before you buy stock in Bitmine Immersion Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitmine Immersion Technologies wasn’t one of them. The 10 stocks that made the cut could produce significant returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of their recommendation, you’d have $593,222! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of their recommendation, you’d have $1,143,342!
Now, it’s worth noting Stock Advisor’s total average return is 1,013% — a market-crushing outperformance compared to 188% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
This article has been published in fool.com via Yahoo News.
Why Bitmine Immersion Technologies Stock Tumbled by Nearly 11% Today
The generally pessimistic sentiment on crypto stocks was exacerbated by a significant analyst price target cut.
finance.yahoo.com
