Shares of Strategy (MSTR) and Block (XYZ) fell in morning trading on Wednesday despite Barclays initiating coverage with 'Overweight' ratings and price targets of $130 and $100 respectively. The declines occurred amid a broader sell-off in stocks, with the SPDR S&P 500 ETF Trust (SPY) falling 0.47% and the Invesco QQQ Trust Series 1 (QQQ) slipping 0.06%. Barclays' coverage initiation focused on identifying 'durable franchises' positioned for long-term growth within the U.S. payments and fintech industry, according to a note to investors cited by TheFly.
Barclays Sets Price Targets Below Analyst Consensus for MSTR
Barclays assigned Strategy (MSTR) a price target of $130 and Block (XYZ) a price target of $100, representing upside of around 30% for both stocks from current levels. However, the $130 target for MSTR sits well below the analyst average of over $303, according to Koyfin data. The $100 price target for XYZ is only 8% higher than the average target of $91.91. MSTR stock fell nearly 4% on Wednesday morning following a drop of over 3% in the previous session.
MSTR and XYZ Stocks Decline Amid Broader Market Sell-Off
XYZ stock slumped nearly 1.5% in morning trade alongside the broader market sell-off. The SPDR S&P 500 ETF Trust (SPY) fell 0.47%, and the tech-heavy Nasdaq-100-tracking Invesco QQQ Trust Series 1 (QQQ) slipped 0.06%. The declines occurred as geopolitical concerns and cryptocurrency market weakness weighed on investor sentiment.
Stocktwits Sentiment Shifts as Retail Traders Debate MSTR Outlook
Retail sentiment on Stocktwits around Strategy shares fell to 'bullish' from 'extremely bullish' territory over the past day, accompanied by chatter at 'normal' levels. Some retail traders forecast that MSTR shares were likely to fall further, with one investor forecasting a dip to $50. However, others reiterated their belief that Bitcoin is likely to rise once the CLARITY Act gets passed, backing Michael Saylor's decision regarding the cryptocurrency. Retail sentiment around XYZ remained in the 'bullish' zone over the past day, accompanied by chatter at 'high' levels.
Bitcoin Falls Below $62,000 as MSTR Posts 40% Year-to-Date Loss
Bitcoin's price fell below $62,000 on Wednesday morning, with Solana (SOL) and Dogecoin (DOGE) posting the largest losses among major cryptocurrencies. Retail sentiment around Bitcoin on Stocktwits remained in 'bullish' territory over the past day, with chatter steady at 'normal' levels. Bitcoin's price has fallen around 30% this year, while MSTR's stock is on track to be down 40% if losses hold till the closing bell. XYZ's stock has gained nearly 20% in the same time period.
FAQ
What happened to MSTR and XYZ stocks on Wednesday morning?
Shares of Strategy (MSTR) and Block (XYZ) fell in morning trading on Wednesday despite Barclays initiating coverage with 'Overweight' ratings. MSTR fell nearly 4% and XYZ slumped nearly 1.5% amid a broader market sell-off.
What price targets did Barclays set for MSTR and XYZ?
Barclays set a price target of $130 for MSTR and $100 for XYZ. The MSTR target is well below the analyst average of over $303, while the XYZ target is 8% higher than the average of $91.91.
How has Bitcoin's price performance affected MSTR stock this year?
Bitcoin's price has fallen around 30% this year and dropped below $62,000 on Wednesday morning. MSTR's stock is on track to be down 40% year-to-date if losses hold till the closing bell, reflecting the cryptocurrency's impact on the company's valuation.
