Strategy stock falls despite record Q2 results, H.C. Wainwright maintains Buy

Published 04/08/2025, 18:40
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Investing.com - H.C. Wainwright has reiterated its Buy rating and $521.00 price target on Strategy (NASDAQ:MSTR) following the company’s record second-quarter 2025 results released Thursday. According to InvestingPro data, analyst consensus remains bullish with targets ranging from $175 to $705, while the stock currently trades at $385.20.

Strategy’s Q2 performance exceeded consensus earnings forecasts, with the company raising its 2025 Bitcoin KPI targets for the second time this year and introducing a full-year 2025 financial outlook. Despite these positive developments, the stock fell approximately 9% on Friday, compared to 2% declines in Bitcoin and the Nasdaq. InvestingPro analysis shows the company maintains a ’FAIR’ overall financial health score, with particularly strong profitability metrics. Subscribers can access 12 additional ProTips for deeper insights into Strategy’s performance.

H.C. Wainwright attributed the share price drop to Friday’s weak jobs report, which had a disproportionate negative impact on cryptocurrency-related equities. The firm noted that Strategy now trades at a 1.64x premium to NAV based on its current Bitcoin holdings valued at $71.8 billion, representing over a 20% discount to historical levels. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with a P/E ratio of 19.4x and an impressive year-to-date return of 26.6%.

The financial services firm expressed increased bullishness on Strategy for three key reasons: management’s continued pattern of exceeding guidance targets, improved visibility into near-term financial results with newly initiated guidance projecting $34 billion in operating income and $24 billion in net income for 2025, and the introduction of a capital markets framework with specific guidelines for future common stock issuance.

H.C. Wainwright maintained its positive outlook on Strategy based on the company’s valuation, strong fundamentals as measured by Bitcoin KPIs, and an optimistic view of Bitcoin’s performance in the second half of the year, citing factors including greater cryptocurrency regulatory clarity, accelerating institutional adoption, and rising M2 money supply.

In other recent news, MicroStrategy reported significant updates regarding its bitcoin acquisitions and at-the-market (ATM) program. Between July 28 and August 3, 2025, the company acquired 21,021 additional bitcoins for approximately $2.46 billion, bringing its total bitcoin holdings to 628,791, acquired for a total of about $46.08 billion. MicroStrategy also launched an ATM program to sell up to $4.2 billion of its Variable Rate Series A Perpetual Stretch Preferred Stock. In analyst updates, BTIG increased its price target for MicroStrategy to $700 from $620, maintaining a Buy rating, citing the company’s substantial net income and growing support for bitcoin. Similarly, Clear Street raised its price target for Strategy to $537 from $508, reflecting expectations of stronger bitcoin yield and higher forward bitcoin balances. These developments highlight the company’s ongoing strategic focus on bitcoin investments and capital-raising initiatives.

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