Strategy (MSTR) Stock Plummets 48% Yet Remains Overvalued
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Source: NASDAQ.COM
- Poor Stock Performance: Strategy's stock plummeted 48% in 2025, while Bitcoin only fell 5%, indicating the company's high volatility and suggesting investors should proceed with caution.
- Impact of Digital Assets: As the largest corporate holder of Bitcoin, Strategy reported an unrealized gain of $3.9 billion in its latest quarter, overshadowing its $129 million revenue, highlighting its profitability's dependence on Bitcoin market performance.
- Overvaluation Concerns: With a market cap of $50 billion, analysts argue that Strategy remains overvalued due to declining revenues and lack of competitive advantage, indicating significant investment risks.
- Cautious Investment Advice: Although Strategy showed a year-to-date gain of 5.5% in early 2026, its weak business fundamentals lead analysts to recommend focusing on other stocks with greater potential.
Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSTR is 453.17 USD with a low forecast of 229.00 USD and a high forecast of 705.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 173.710
Low
229.00
Averages
453.17
High
705.00
Current: 173.710
Low
229.00
Averages
453.17
High
705.00
About MSTR
Strategy Inc., formerly MicroStrategy Incorporated, is a bitcoin treasury and business intelligence company. The Company provides cloud-native, artificial intelligence (AI)-powered enterprise analytics software to thousands of global customers. The Company’s Strategy ONE platform provides access to AI-powered workflows, unlimited data sources, cloud-native technologies, and performance to speed up time from data to action. Strategy One delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Its Strategy Mosaic is a universal intelligence layer that provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. The Strategy Mosaic offers data clarity and connection by eliminating trade-offs between flexibility, control, and speed.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
