Is MARA Stock Built to Withstand More Downside?
MARA (MARA) stock is down 42.6% in 21 trading days. The recent slide reflects renewed concerns around Bitcoin volatility and post-earnings valuation, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where MARA stands today.
- Size: MARA is a $4.2 Bil company with $919 Mil in revenue currently trading at $11.21.
- Fundamentals: Last 12 month revenue growth of 53.5% and operating margin of -68.0%.
- Liquidity: Has Debt to Equity ratio of 0.87 and Cash to Assets ratio of 0.09
- Valuation: MARA stock is currently trading at P/E multiple of 4.5 and P/EBIT multiple of 3.4
- Has returned (median) -20.4% within a year following sharp dips since 2010. See MARA Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Very Low valuation – making the stock Attractive. For details, see Buy or Sell MARA Stock
That brings us to the key consideration for investors worried about this fall: how resilient is MARA stock if markets turn south? This is where our downturn resilience framework comes in. Suppose MARA stock falls another 20-30% to $8 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- MARA stock fell 95.9% from a high of $76.09 on 9 November 2021 to $3.15 on 28 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $31.07 on 27 December 2023 , and currently trades at $11.21
| MARA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -95.9% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- MARA stock fell 68.5% from a high of $1.26 on 12 February 2020 to $0.40 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 27 July 2020
| MARA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -68.5% | -33.9% |
| Time to Full Recovery | 131 days | 148 days |
2018 Correction
- MARA stock fell 97.4% from a high of $34.08 on 25 January 2017 to $0.88 on 31 December 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 9 February 2021
| MARA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -97.4% | -19.8% |
| Time to Full Recovery | 406 days | 120 days |
Feeling jittery about MARA stock? Consider portfolio approach.
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