We recently published 10 Stocks Facing Selling Pressure Ahead of Christmas. Hut 8 Corp. (NASDAQ:HUT) is one of the biggest losers on Monday.
Hut 8 fell for a second day on Monday, slashing 14.21 percent to close at $35.44 apiece as investors trimmed their positions following the decline in Bitcoin prices.
As of writing, Bitcoin was down by 2.27 percent at $86,168, with traders appearing to be taking early profits ahead of the Christmas holiday. Hut 8 Corp. (NASDAQ:HUT) declined alongside its peers, namely Terawulf, Cipher Mining, and CleanSpark, following the news.
Additionally, Hut 8 Corp. (NASDAQ:HUT) was dented by an overall pessimism for the AI sector after renewed concerns about heavy investments spent on AI. Oracle Corp., for instance, saw its debt balloon to $108 billion amid its ramped-up spending on artificial intelligence, sparking concerns among investors about how quickly the technology giants would be able to recoup their billion-dollar investments in AI.
Hut 8 Corp. (NASDAQ:HUT) is originally a Bitcoin mining company that has slowly transitioned to high-performance computing and data center servicing.
In the third quarter of the year, 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.
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.
