STRC, VERI among major tech gainers; CMTL, PRSO among losers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2024
0mins
Should l Buy STRC?
Source: SeekingAlpha
- Gainers and Losers:
- Palladyne AI (STRC), Veritone (VERI), Treasure Global (TGL), Infobird (IFBD), and Minim (MINM) were the top gainers in the market.
- Comtech Telecommunications (CMTL), Peraso (PRSO), DLocal (DLO), GigaCloud Technology (GCT), and Zepp Health (ZEPP) experienced losses.
- Market Performance:
- S&P 500 Information Technology Sector increased by 0.33% to 3791.91.
- Software & Services contributed 47.3% to the index and rose by 0.67% to 4638.87.
- Technology Hardware & Equipment, contributing 30.9%, increased by 1.1% to 3339.79.
- Semiconductors & Semiconductors Equipment, contributing 21.8%, decreased by 0.64% to 4401.98.
- Technology Select Sector Insights:
- Technology's momentum is driven by complacency according to Oppenheimer.
- Microsoft was the least shorted S&P 500 information technology stock in February.
- XLK ETF Analysis:
- XLK may still have growth potential.
- XLK ETF offers a way to invest in Microsoft but comes with volatility risks.
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Analyst Views on STRC
Wall Street analysts forecast STRC stock price to fall
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 100.030
Low
8.00
Averages
8.25
High
8.50
Current: 100.030
Low
8.00
Averages
8.25
High
8.50
No data
About STRC
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.
Jim Chanos Critiques Strategy Inc.'s Preferred Shares Amid Stock Decline
- Stock Price Decline: Strategy Inc.'s Class A shares have plunged over 16% year-to-date and more than 60% over the past year, indicating the company's vulnerability amid a downturn in the Bitcoin market, resulting in a market valuation of $41.99 billion, which is below its Bitcoin assets valued at $48.17 billion.
- Preferred Shares Controversy: Despite CEO Phong Le claiming that the perpetual preferred shares closing at $100 is the 'story of the day,' short seller Jim Chanos expressed skepticism, arguing that such statements from a CEO with a plummeting stock are inappropriate, reflecting the company's dire financial situation.
- Cash Flow Assurance: Strategy executives assert that the company has 2.5 years of cash flow to cover dividends and debt, even amid risks of Bitcoin potentially dropping to $8,000, indicating a conservative financial management approach aimed at avoiding further liquidity pressures.
- Arbitrage Trading Strategy: Chanos has engaged in an arbitrage strategy by shorting MSTR stock while going long on Bitcoin, believing that the premium on MSTR relative to its Bitcoin holdings is unjustified and will dilute over time as the company continues to issue common equity, showcasing his deep market insights.
See More
Bitcoin Plummets, Raising Market Concerns
- Bitcoin Price Drop: Bitcoin has fallen below $64,000 for the first time since October 2024, representing a decline of over 45% from last year's peak, which has effectively erased all gains for investors and indicates a severe loss of confidence in the cryptocurrency market.
- MicroStrategy Financial Crisis: MicroStrategy reported an operating loss of $17.4 billion in Q4, significantly higher than the $1 billion loss in the same period of 2024, while holding 713,502 bitcoins purchased at an average price of $76,052, now below current trading levels, putting immense financial pressure on the company.
- Market Sentiment Shift: Despite being pitched as a hedge against inflation and global instability, Bitcoin has failed to perform as expected in the current economic climate, being outperformed by gold and indicating a weakening investor confidence in the crypto market.
- Saylor's Response Strategy: Despite facing substantial losses, MicroStrategy CEO Michael Saylor continues to urge supporters to hold onto their Bitcoin, reflecting his unwavering belief in the market, yet this optimism appears increasingly isolated in the current environment.
See More
Amazon's Huge Capital Spending Leads to Futures Losses and Bitcoin Bounce
- Market Volatility: Futures markets pared losses after the stock market broke key levels, indicating investor concerns about future economic prospects, which could lead to short-term market instability.
- Amazon's Capital Spending: Amazon's stock fell due to significant capital expenditures, reflecting the company's aggressive strategy in expansion and infrastructure investment, which may impact its short-term profitability.
- Bitcoin Bounce: Despite overall market pressure, Bitcoin saw a slight bounce, indicating a demand for digital assets as a safe haven in uncertain market conditions, potentially attracting more investor interest.
- Investor Sentiment: The market's strong reaction to Amazon's spending may lead investors to reassess the risk and return of tech stocks, influencing overall investment strategies.
See More
Stock Market Plummets Amid Amazon Earnings Miss
- Market Decline: The stock market experienced a significant sell-off on Thursday, with major indices declining broadly, reflecting investor concerns about the economic outlook amid high inflation and rising interest rates, which have dampened market confidence.
- Bitcoin Crash: Bitcoin prices fell sharply, driven by a bearish market sentiment as investors rushed to sell off crypto assets, likely due to concerns over increased regulation in the crypto market and a general rise in risk aversion.
- Amazon Earnings Miss: Amazon's stock price dropped following its earnings report, primarily due to concerns over its massive capital spending plans, which raised investor apprehensions about future profitability, highlighting the tension between expansion and earnings.
- Capital Expenditure Impact: While Amazon's capital expenditure plans aim to drive long-term growth, they may negatively affect cash flow and shareholder returns in the short term, leading to lowered market expectations for its future performance.
See More
Stock Market Plummets as Amazon Reports Disappointing Earnings
- Market Decline: The stock market experienced a significant sell-off on Thursday, with major indices declining broadly, reflecting investor concerns about the economic outlook, which may dampen market confidence and influence short-term investment decisions.
- Bitcoin Crash: Bitcoin prices fell sharply, contributing to a gloomy market sentiment, as investor confidence in cryptocurrencies wanes, potentially leading to further capital outflows from this asset class and affecting the stock performance of related companies.
- Amazon's Disappointing Earnings: Amazon's stock dropped following its earnings report, primarily due to concerns over its massive capital spending plans, which may prompt a reassessment of its long-term growth potential by the market.
- Impact of Capital Expenditure: While Amazon's capital expenditure plans aim to expand its business, they may exert pressure on cash flow in the short term, thereby affecting its stock performance and investor confidence.
See More
Strategy Inc Stock Enters Oversold Territory
- Oversold Indicator Analysis: Strategy Inc's Relative Strength Index (RSI) has dropped to 26.9, falling below the oversold threshold of 30, indicating that the recent stock price decline may be nearing exhaustion, attracting attention from investors looking for buying opportunities.
- Dividend Yield Appeal: STRC's recent annualized dividend of $11.25 translates to an annual yield of 11.48% based on the current share price of $97.99, providing significant yield potential for dividend investors, especially in the context of falling stock prices.
- Market Comparison Analysis: Compared to the average RSI of 56.2 for other dividend stocks covered by Dividend Channel, STRC's oversold condition may present a more attractive buying opportunity for investors, particularly amid increasing market volatility.
- Dividend History Consideration: While dividends are not always predictable, analyzing STRC's dividend history can assist investors in assessing the likelihood of future dividend sustainability, enabling more informed investment decisions.
See More
Jim Chanos Critiques Strategy Inc.'s Preferred Shares Amid Stock Decline
- Stock Price Decline: Strategy Inc.'s Class A shares have plunged over 16% year-to-date and more than 60% over the past year, indicating the company's vulnerability amid a downturn in the Bitcoin market, resulting in a market valuation of $41.99 billion, which is below its Bitcoin assets valued at $48.17 billion.
- Preferred Shares Controversy: Despite CEO Phong Le claiming that the perpetual preferred shares closing at $100 is the 'story of the day,' short seller Jim Chanos expressed skepticism, arguing that such statements from a CEO with a plummeting stock are inappropriate, reflecting the company's dire financial situation.
- Cash Flow Assurance: Strategy executives assert that the company has 2.5 years of cash flow to cover dividends and debt, even amid risks of Bitcoin potentially dropping to $8,000, indicating a conservative financial management approach aimed at avoiding further liquidity pressures.
- Arbitrage Trading Strategy: Chanos has engaged in an arbitrage strategy by shorting MSTR stock while going long on Bitcoin, believing that the premium on MSTR relative to its Bitcoin holdings is unjustified and will dilute over time as the company continues to issue common equity, showcasing his deep market insights.
See More
Bitcoin Plummets, Raising Market Concerns
- Bitcoin Price Drop: Bitcoin has fallen below $64,000 for the first time since October 2024, representing a decline of over 45% from last year's peak, which has effectively erased all gains for investors and indicates a severe loss of confidence in the cryptocurrency market.
- MicroStrategy Financial Crisis: MicroStrategy reported an operating loss of $17.4 billion in Q4, significantly higher than the $1 billion loss in the same period of 2024, while holding 713,502 bitcoins purchased at an average price of $76,052, now below current trading levels, putting immense financial pressure on the company.
- Market Sentiment Shift: Despite being pitched as a hedge against inflation and global instability, Bitcoin has failed to perform as expected in the current economic climate, being outperformed by gold and indicating a weakening investor confidence in the crypto market.
- Saylor's Response Strategy: Despite facing substantial losses, MicroStrategy CEO Michael Saylor continues to urge supporters to hold onto their Bitcoin, reflecting his unwavering belief in the market, yet this optimism appears increasingly isolated in the current environment.
See More
Amazon's Huge Capital Spending Leads to Futures Losses and Bitcoin Bounce
- Market Volatility: Futures markets pared losses after the stock market broke key levels, indicating investor concerns about future economic prospects, which could lead to short-term market instability.
- Amazon's Capital Spending: Amazon's stock fell due to significant capital expenditures, reflecting the company's aggressive strategy in expansion and infrastructure investment, which may impact its short-term profitability.
- Bitcoin Bounce: Despite overall market pressure, Bitcoin saw a slight bounce, indicating a demand for digital assets as a safe haven in uncertain market conditions, potentially attracting more investor interest.
- Investor Sentiment: The market's strong reaction to Amazon's spending may lead investors to reassess the risk and return of tech stocks, influencing overall investment strategies.
See More
Stock Market Plummets Amid Amazon Earnings Miss
- Market Decline: The stock market experienced a significant sell-off on Thursday, with major indices declining broadly, reflecting investor concerns about the economic outlook amid high inflation and rising interest rates, which have dampened market confidence.
- Bitcoin Crash: Bitcoin prices fell sharply, driven by a bearish market sentiment as investors rushed to sell off crypto assets, likely due to concerns over increased regulation in the crypto market and a general rise in risk aversion.
- Amazon Earnings Miss: Amazon's stock price dropped following its earnings report, primarily due to concerns over its massive capital spending plans, which raised investor apprehensions about future profitability, highlighting the tension between expansion and earnings.
- Capital Expenditure Impact: While Amazon's capital expenditure plans aim to drive long-term growth, they may negatively affect cash flow and shareholder returns in the short term, leading to lowered market expectations for its future performance.
See More
Stock Market Plummets as Amazon Reports Disappointing Earnings
- Market Decline: The stock market experienced a significant sell-off on Thursday, with major indices declining broadly, reflecting investor concerns about the economic outlook, which may dampen market confidence and influence short-term investment decisions.
- Bitcoin Crash: Bitcoin prices fell sharply, contributing to a gloomy market sentiment, as investor confidence in cryptocurrencies wanes, potentially leading to further capital outflows from this asset class and affecting the stock performance of related companies.
- Amazon's Disappointing Earnings: Amazon's stock dropped following its earnings report, primarily due to concerns over its massive capital spending plans, which may prompt a reassessment of its long-term growth potential by the market.
- Impact of Capital Expenditure: While Amazon's capital expenditure plans aim to expand its business, they may exert pressure on cash flow in the short term, thereby affecting its stock performance and investor confidence.
See More
Strategy Inc Stock Enters Oversold Territory
- Oversold Indicator Analysis: Strategy Inc's Relative Strength Index (RSI) has dropped to 26.9, falling below the oversold threshold of 30, indicating that the recent stock price decline may be nearing exhaustion, attracting attention from investors looking for buying opportunities.
- Dividend Yield Appeal: STRC's recent annualized dividend of $11.25 translates to an annual yield of 11.48% based on the current share price of $97.99, providing significant yield potential for dividend investors, especially in the context of falling stock prices.
- Market Comparison Analysis: Compared to the average RSI of 56.2 for other dividend stocks covered by Dividend Channel, STRC's oversold condition may present a more attractive buying opportunity for investors, particularly amid increasing market volatility.
- Dividend History Consideration: While dividends are not always predictable, analyzing STRC's dividend history can assist investors in assessing the likelihood of future dividend sustainability, enabling more informed investment decisions.
See More
