Strategy (NASDAQ:MSTR) Trading Down 7.8% – What’s Next?

Strategy Inc (NASDAQ:MSTR)’s stock price fell 7.8% during mid-day trading on Tuesday . The company traded as low as $159.17 and last traded at $160.1510. 5,344,341 shares were traded during mid-day trading, a decline of 77% from the average session volume of 23,024,195 shares. The stock had previously closed at $173.71.

Key Headlines Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Director Jane Dietze bought 1,000 shares (~$99.48 avg), a notable insider purchase that signals management-level conviction. Read More.
• Positive Sentiment: CEO commentary defending the bitcoin buys and reiterating bullishness — management is publicly backing the accumulation strategy and the company’s preferred-equity plan (Stretch), which can reassure long-term holders. Read More.
• Positive Sentiment: Ongoing institutional interest (reported large Vanguard and other institutional ownership) provides demand validation for MSTR exposure to BTC and company securities. Read More.
• Neutral Sentiment: Strategy completed a ~$2.13B purchase (~22,305 BTC), expanding its bitcoin treasury past ~700k BTC — this confirms the company’s stated treasury-first strategy but materially increases equity exposure to bitcoin price swings. Read More.
• Neutral Sentiment: Valuation and catalyst debates continue: some analysts highlight attractive mNAV-to-BTC metrics and optional AI/software upside; others emphasize the company’s heavy correlation to BTC price. These mixed views keep headline-driven volatility likely. Read More.
• Negative Sentiment: Immediate market reaction pushed shares lower after the leveraged BTC buy; coverage raised concerns about leverage, potential dilution and large unrealized losses when bitcoin weakens. That sentiment pressure explains short‑term share weakness. Read More.
• Negative Sentiment: Critical commentary argues large concentrated BTC holdings may deter broader institutional adoption of bitcoin and magnify reputational and market‑risk exposure for Strategy. Such narratives can amplify downside during BTC drawdowns. Read More.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on MSTR. Wells Fargo & Company restated an “equal weight” rating and set a $54.00 price target (down previously from $65.00) on shares of Strategy in a report on Tuesday, September 30th. Monness Crespi & Hardt upgraded shares of Strategy from a “sell” rating to a “neutral” rating in a research note on Monday, November 10th. Citigroup reduced their target price on shares of Strategy from $485.00 to $325.00 and set a “buy” rating on the stock in a report on Monday, December 22nd. Cantor Fitzgerald reiterated an “overweight” rating on shares of Strategy in a report on Friday, December 5th. Finally, Truist Financial set a $268.00 price objective on shares of Strategy in a report on Friday, January 9th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $435.44.

Strategy Stock Performance

The company has a current ratio of 0.66, a quick ratio of 0.66 and a debt-to-equity ratio of 0.16. The firm’s fifty day moving average price is $171.01 and its 200-day moving average price is $281.98. The firm has a market cap of $46.26 billion, a price-to-earnings ratio of 7.49 and a beta of 3.42.

Strategy (NASDAQ:MSTR) last announced its quarterly earnings results on Thursday, October 30th. The software maker reported $8.42 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.10) by $8.52. Strategy had a net margin of 1,667.09% and a return on equity of 20.98%. The firm had revenue of $128.69 million during the quarter, compared to analysts’ expectations of $116.65 million. During the same period in the previous year, the company earned ($1.56) earnings per share. Strategy’s quarterly revenue was up 10.9% compared to the same quarter last year. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Insider Activity at Strategy

In other news, Director Carl J. Rickertsen purchased 5,000 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The shares were purchased at an average price of $155.88 per share, for a total transaction of $779,400.00. Following the purchase, the director directly owned 5,000 shares of the company’s stock, valued at $779,400. This represents a ∞ increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jane A. Dietze purchased 1,000 shares of the business’s stock in a transaction on Tuesday, January 20th. The shares were purchased at an average cost of $99.48 per share, for a total transaction of $99,480.00. Following the transaction, the director owned 3,600 shares of the company’s stock, valued at $358,128. This trade represents a 38.46% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders bought 7,112 shares of company stock valued at $984,888 and sold 13,177 shares valued at $2,843,166. Insiders own 8.46% of the company’s stock.

Institutional Trading of Strategy

A number of large investors have recently bought and sold shares of MSTR. Mutual Advisors LLC raised its holdings in shares of Strategy by 2.0% in the second quarter. Mutual Advisors LLC now owns 1,350 shares of the software maker’s stock valued at $548,000 after buying an additional 27 shares during the last quarter. Bernardo Wealth Planning LLC increased its position in Strategy by 3.9% in the 2nd quarter. Bernardo Wealth Planning LLC now owns 772 shares of the software maker’s stock valued at $312,000 after acquiring an additional 29 shares during the period. Smith Anglin Financial LLC raised its stake in Strategy by 1.2% during the 2nd quarter. Smith Anglin Financial LLC now owns 2,537 shares of the software maker’s stock valued at $1,025,000 after acquiring an additional 30 shares during the last quarter. GPS Wealth Strategies Group LLC raised its stake in Strategy by 2.7% during the 2nd quarter. GPS Wealth Strategies Group LLC now owns 1,163 shares of the software maker’s stock valued at $470,000 after acquiring an additional 31 shares during the last quarter. Finally, Magnus Financial Group LLC lifted its position in Strategy by 0.9% during the 2nd quarter. Magnus Financial Group LLC now owns 3,660 shares of the software maker’s stock worth $1,479,000 after acquiring an additional 32 shares during the period. Institutional investors and hedge funds own 59.84% of the company’s stock.

About Strategy

Strategy, formerly known as MicroStrategy, Incorporated (NASDAQ: MSTR) is a global provider of enterprise analytics and mobility software. The company’s flagship platform offers business intelligence, data discovery, and advanced visualizations that enable organizations to analyze large volumes of data and deliver actionable insights. In addition to traditional on-premises deployments, Strategy provides a range of cloud-based services and managed offerings that allow customers to leverage the power of its analytics tools without managing complex infrastructure.

Founded in 1989 by Michael J.