Strategy (NASDAQ:MSTR) Stock Price Down 8.2% Following Weak Earnings

Key Points

• Strategy shares fell 8.2% after the company reported a quarterly loss of $24.45 per share, far worse than analysts’ expected loss of $2.19. Revenue rose 6.9% year over year to $122.37 million but narrowly missed estimates.
• The $8.22 billion net loss was primarily driven by an $8.32 billion unrealized decline in the value of Strategy’s Bitcoin holdings. The company held 843,775 BTC and established a $3.75 billion cash reserve to cover preferred dividends and interest obligations.
• Analysts remain broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $257.88, although several firms have recently lowered their targets. Strategy also sold about $218 million of Bitcoin and issued common shares, raising concerns about dilution and the sustainability of its acquisition strategy.

Strategy Inc (NASDAQ:MSTR - Get Free Report) shares fell 8.2% during trading on Friday following a weaker than expected earnings announcement. The company traded as low as $91.78 and last traded at $89.7420. 2,893,509 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 20,941,900 shares. The stock had previously closed at $97.74.

The software maker reported ($24.45) EPS for the quarter, missing analysts' consensus estimates of ($2.19) by ($22.26). Strategy had a negative net margin of 2,482.01% and a negative return on equity of 26.97%. The business had revenue of $122.37 million during the quarter, compared to analysts' expectations of $122.90 million. During the same period in the prior year, the company posted $32.52 EPS. The company's revenue for the quarter was up 6.9% on a year-over-year basis.

More Strategy News

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: BTIG Research reaffirmed its Buy rating and maintained a $250 price target, implying substantial upside from recent levels. BTIG rating report
• Positive Sentiment: Strategy’s Bitcoin holdings increased to 843,775 BTC, approximately 25% higher than at the start of 2026. The company also built a $3.75 billion U.S. dollar reserve, which management said can cover more than two years of preferred dividends and interest obligations. Strategy posts Q2 loss as Bitcoin slump drives unrealized losses
• Positive Sentiment: Bitcoin’s recovery above $65,000 helped improve sentiment toward Strategy, whose valuation and stock performance are closely tied to the cryptocurrency. Investors also anticipate that the company could resume Bitcoin purchases after raising cash and pausing acquisitions to strengthen its balance sheet. Why Bitcoin whale Strategy may resume buying crypto
• Neutral Sentiment: Management said it has learned the importance of maintaining liquid U.S. dollars rather than relying solely on Bitcoin, signaling a more conservative approach to funding preferred-stock obligations and interest payments. Strategy CEO discusses liquid U.S. dollar reserves
• Negative Sentiment: Strategy reported an $8.22 billion second-quarter net loss, or $24.45 per diluted share, versus a profit of roughly $10 billion a year earlier. The loss was primarily caused by an $8.32 billion unrealized decline in the value of its Bitcoin holdings. Revenue rose 6.9% to $122.4 million but fell slightly short of estimates, while the per-share loss was substantially wider than forecasts. Strategy misses Q2 earnings estimates
• Negative Sentiment: The company sold approximately $218 million of Bitcoin and issued millions of common shares to raise cash, creating dilution concerns. Its prolonged pause in Bitcoin purchases also raises questions about whether the aggressive accumulation strategy is becoming harder to finance. Strategy share sales draw criticism

Analysts Set New Price Targets

MSTR has been the topic of a number of research analyst reports. Cantor Fitzgerald reiterated an "overweight" rating on shares of Strategy in a research note on Thursday, July 23rd. Benchmark reissued a "buy" rating and issued a $435.00 target price (down from $570.00) on shares of Strategy in a research report on Monday. TD Cowen reduced their price target on shares of Strategy from $400.00 to $260.00 and set a "buy" rating on the stock in a research report on Tuesday, June 30th. Mizuho decreased their price target on Strategy from $265.00 to $213.00 and set an "outperform" rating for the company in a research note on Tuesday, July 7th. Finally, Monness Crespi & Hardt reiterated a "neutral" rating on shares of Strategy in a research note on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $257.88.

Insider Buying and Selling at Strategy

In other news, Director Jarrod M. Patten sold 1,950 shares of Strategy stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $98.48, for a total value of $192,036.00. Following the completion of the transaction, the director directly owned 28,406 shares of the company's stock, valued at approximately $2,797,422.88. The trade was a 6.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Phong Le acquired 11,000 shares of the stock in a transaction that occurred on Monday, June 22nd. The shares were acquired at an average cost of $90.80 per share, with a total value of $998,800.00. Following the transaction, the chief executive officer owned 11,000 shares in the company, valued at approximately $998,800. The trade was a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have bought 11,166 shares of company stock worth $1,014,265 and have sold 181,422 shares worth $23,144,128. Insiders own 6.49% of the company's stock.

Hedge Funds Weigh In On Strategy

A number of large investors have recently bought and sold shares of MSTR. Abound Wealth Management raised its position in shares of Strategy by 41.5% during the 2nd quarter. Abound Wealth Management now owns 1,057 shares of the software maker's stock worth $92,000 after purchasing an additional 310 shares during the period. Handelsbanken Fonder AB boosted its position in Strategy by 28.8% during the 2nd quarter. Handelsbanken Fonder AB now owns 106,522 shares of the software maker's stock valued at $9,260,000 after purchasing an additional 23,829 shares during the period. Wealthcare Advisory Partners LLC boosted its position in Strategy by 4.4% during the 2nd quarter. Wealthcare Advisory Partners LLC now owns 7,857 shares of the software maker's stock valued at $683,000 after purchasing an additional 329 shares during the period. Teamwork Financial Advisors LLC grew its stake in Strategy by 25.3% during the 2nd quarter. Teamwork Financial Advisors LLC now owns 19,515 shares of the software maker's stock worth $1,696,000 after buying an additional 3,937 shares during the last quarter. Finally, 180 Wealth Advisors LLC grew its stake in Strategy by 144.3% during the 2nd quarter. 180 Wealth Advisors LLC now owns 4,849 shares of the software maker's stock worth $422,000 after buying an additional 2,864 shares during the last quarter. Institutional investors own 59.84% of the company's stock.

Strategy Price Performance

The company has a debt-to-equity ratio of 0.22, a current ratio of 6.05 and a quick ratio of 6.05. The stock has a market capitalization of $31.64 billion, a price-to-earnings ratio of -2.23 and a beta of 3.54. The company has a 50-day simple moving average of $111.67 and a two-hundred day simple moving average of $135.32.

Strategy Company Profile

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.

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