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We recently compiled a list of the 10 Stocks Trade Weaker on Disappointing News. In this article, we are going to take a look at where MicroStrategy Incorporated (NASDAQ:MSTR) stands against the other stocks.
Wall Street finished the trading week on a strong note, with all major indices recording gains as investors digested the latest US jobs data, which fell short of expectations.
The tech-heavy Nasdaq posted the largest gain with 0.70 percent, followed by the S&P 500 with 0.55 percent, and the Dow Jones by 0.52 percent.
Ten companies across mixed sectors bucked a wider market optimism, ending Friday in the red territory. In this article, we have listed the 10 worst-performing names and detailed the reasons behind their performance.
To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A software engineer wearing a headset, collaborating with a remote team on a project.
MicroStrategy Incorporated (NASDAQ:MSTR)
MicroStrategy Incorporated (NASDAQ:MSTR), doing business as Strategy, dropped by 5.57 percent on Friday to end at $287.18 apiece as investors soured on the lack of more active support for the cryptocurrency industry from the recently concluded cryptocurrency summit at the White House.
The summit, which was joined by MicroStrategy Incorporated (NASDAQ:MSTR) founder Michael Saylor, finished only with news that President Donald Trump had signed an order that would establish a “strategic Bitcoin reserve,” a report that was already priced in by investors over the past few weeks.
While the measure has been actively pushed by the cryptocurrency community, the order indicated that the reserve would only compromise Bitcoin holdings previously seized by federal law enforcement agencies.
Another stockpile would also be created to hold non-bitcoin digital assets, namely Ethereum and Ripple, that have been seized in enforcement proceedings.
MicroStrategy Incorporated (NASDAQ:MSTR)’s drop was in line with the decline in Bitcoin prices, which, as of this writing, was down to the $86,000 level.
Overall MSTR ranks 10th on our list of Friday's worst performers. While we acknowledge the potential of MSTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSTR but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.