HIVE Should I Buy
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HIVE Digital Technologies Ltd is not a strong buy for a beginner, long-term investor at this moment. The stock faces significant headwinds, including weak technical indicators, declining analyst sentiment, and poor financial performance. While there is potential for growth in its AI cloud business, the immediate risks outweigh the rewards, especially given the investor's preference for long-term stability.
The technical indicators suggest a bearish trend. The MACD is negative and contracting, RSI is neutral but leaning towards oversold, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). Key support levels are at $2.074 and $1.885, with resistance at $2.685 and $2.874. The stock is trading below its pivot point of $2.38, further indicating weakness.
The company has shown significant revenue growth in Q2 2026, up 285.26% YoY. Analysts have noted potential long-term growth opportunities in AI cloud and colocation developments.
The company reported a net income drop of -19846.25% YoY and declining gross margins (-107.12% YoY). Analysts have downgraded the stock, citing concerns about scalability and lack of a durable edge in the AI cloud business. The stock has a bearish technical setup, and there is no recent positive news or significant trading activity from insiders or hedge funds.
In Q2 2026, the company reported revenue growth of 285.26% YoY to $87.25M. However, net income dropped significantly to -$15.8M (-19846.25% YoY), and gross margins fell to 4.71% (-107.12% YoY). EPS remained negative at -0.07.
Analyst sentiment is negative. Keefe Bruyette downgraded the stock to Market Perform from Outperform, with a reduced price target of $3.50 (down from $11), citing concerns about scalability and insufficient operating returns. Other analysts have also lowered price targets, reflecting a cautious outlook on the company's prospects.
