Strategy Stock Is Plummeting Today -- Is the Bitcoin Company a Buy?

Strategy (NASDAQ: MSTR) stock is slumping in Tuesday's trading. The company's share price was down 13% as of 2:40 p.m. ET. Meanwhile, the S&P 500 was down 0.6% and the Nasdaq Composite was down 1.3%. The price of Bitcoin was down 7.8% over the previous 24 hours.The company, which was known as MicroStrategy until recently, is seeing its valuation pull back in response to an increase in bearish sentiment that is shaping trading for stocks and cryptocurrencies. News that the Trump administration plans to move ahead with significant new tariffs on Canada and Mexico and implement new restrictions on semiconductor exports to China is driving substantial valuation pullbacks today. Nvidia's fourth-quarter earnings release and conference call is also scheduled to take place after the market closes tomorrow and could have a substantial impact on equity and crypto valuations. Strategy has transformed itself into what is effectively a Bitcoin investment company. As such, the stock's performance will tend to see a strong correlation with token-price moves for the market-leading cryptocurrency. Any bull thesis on Strategy stock has to start with a bullish thesis on Bitcoin. With the cryptocurrency now trading down roughly 14% from its high, it's not unreasonable to think that Strategy's share price could surge in conjunction with a valuation rebound for the token.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool