'Losses Don't Mean a Crisis:' Top Analysts Reaffirm a Buy on Strategy Stock (MSTR) after Q4 Results

Strategy (MSTR) stock jumped more than 26% on Friday even after the company reported a large fourth-quarter loss. Following the earnings release, Wall Street analysts said the headline number was misleading and did not signal financial trouble. They maintained Buy ratings on the stock.Claim 50% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Analysts Say the Loss Was Accounting-Driven Strategy reported a $17.4 billion operating loss and a $12.6 billion net loss, but analysts said the figures were largely non-cash charges tied to Bitcoin's price decline rather than weakness in the business. In simple terms, accounting rules reduced the value of its Bitcoin holdings on paper, not the company's cash position. The large reported loss raised investor concerns that the company might need to sell Bitcoin to meet its obligations, but analysts dismissed that view. Strategy holds about 713,500 Bitcoin worth nearly $50 billion against roughly $8.2 billion in convertible debt and more than $2 billion in cash. They also noted the debt has no triggers tied to Bitcoin's price, meaning a decline would not force sales. TD Cowen added the stock tends to move more than Bitcoin itself, rising faster when prices climb and falling more when they drop, and the firm sees no realistic near-term need for the company to liquidate its holdings. Meanwhile, Benchmark reiterated a Buy rating and a $705 price target, based mainly on Bitcoin's future value and an assumption that the cryptocurrency could reach about $225,000 by the end of 2026. The firm's valuation includes the expected worth of the Bitcoin holdings, gains tied to Bitcoin price moves, and the remaining software business. Is MSTR Stock a Buy? Strategy's stock has a consensus Strong Buy rating among 12 Wall Street analysts. That rating is based on 10 Buys and two Hold recommendations issued in the last three months. The average MSTR price target of $377.90 implies 180.07% upside from current levels.