HIVE Digital Technologies (NASDAQ: HIVE) shares fell more than 9% on Friday. The decline follows investor concerns regarding weak profit margins despite significant revenue growth.
HIVE generated approximately $297.8 million in revenue over the past year. The company reported an EBIT margin of -82.2% during this period. Total profit margins currently sit at -83.6%.
Latest quarterly results show a net loss of $142.9 million. Quarterly revenues reached $79.1 million. Market analysts categorize HIVE as a story stock for momentum traders rather than a fundamental earner.
The stock faces technical resistance between the $3.10 and $3.30 price range. Selling pressure consistently meets attempts to break above these levels.