Hut 8 (HUT) Loses 12.5% as Q3 Earnings Priced In

We recently published 10 Stocks Lead Wall Street Downward Spiral. Hut 8 Corp. (NASDAQ:HUT) is one of the worst-performing stocks on Tuesday.

Hut 8 snapped two straight days of gains on Tuesday, losing 12.53 percent to close at $48.11 apiece as investors appeared to have already priced in a strong earnings performance in the third quarter of the year.

In its updated report, Hut 8 Corp. (NASDAQ:HUT) said attributable net income surged by more than 7,600 percent to $50.1 million from only $647,000 in the same period last year.

Revenues jumped by 91 percent to $83.5 million from $43.7 million year-on-year, on the back of strong revenues from high-performance computing (HPC), at $70 million, or 410 percent higher than the $13.7 million year-on-year.Hut 8 (HUT) Loses 12.5% as Q3 Earnings Priced In

“In the third quarter, we reached an inflection point in the scale and maturity of our development flywheel,” Hut 8 Corp. (NASDAQ:HUT) CEO Asher Genoot said.

“As we build on this momentum, our focus remains on monetizing our Energy Capacity Under Development, which together with our broader pipeline, collectively exceed eight gigawatts of capacity as of quarter-end. Supported by a fortress balance sheet, disciplined capital framework, and diversified platform spanning Power, Digital Infrastructure, and Compute, we are executing from a position of strength. Together, we believe these developments reflect a business with structural advantage, proven commercial velocity, and a long runway for continued growth and value creation at the intersection of energy and technology,” he added.

While we acknowledge the potential of HUT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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