Why We’re Not Concerned Yet About Riot Platforms, Inc.’s (NASDAQ:RIOT) 29% Share Price Plunge
Riot Platforms, Inc. (NASDAQ:RIOT) shares have retraced a considerable 29% in the last month, reversing a fair amount of their solid recent performance. Looking back over the past twelve months the stock has been a solid performer regardless, with a gain of 22%.
In spite of the heavy fall in price, Riot Platforms may still be sending strong sell signals at present with a price-to-sales (or “P/S”) ratio of 9x, when you consider almost half of the companies in the Software industry in the United States have P/S ratios under 4.8x and even P/S lower than 2x aren’t out of the ordinary. However, the P/S might be quite high for a reason and it requires further investigation to determine if it’s justified.
