Crypto Stock Falls After Disappointing Earnings

MSTR call traders aren't deterred by the dismal results

Jake Scott

Deputy Editor

Apr 30, 2024 at 10:05 AM

MSTR
BTC

Shares of crypto-adjacent firm MicroStrategy Incorporated (NASDAQ:MSTR) are crumbling today after a disappointing first-quarter report. The company's adjusted losses of $3.09 per share and revenue of $115.2 million were much wider than anticipated, though the miss can be chalked up to the volatility in the price of Bitcoin (BTC), which recently slid below $61,000.

At last glance, MSTR is 6.5% lower to trade at $1,209.23, and earlier fell as low as $1,165.21. The stock still boasts an 89.4% year-to-date lead, which is nearly double Bitcoin's 46.2% year-to-date gain. MicroStrategy stock is trading well beneath its March 27, all-time high of $1,999.99, and just fell below short-term support at its 60-day moving average.

Despite the dip, call traders are targeting the security. Within the first half hour of trading, 5,898 bullish bets have crossed the tape, which is double the average intraday volume. Most popular is the June 3,800 call, with buy-to-open activity detected there.

Canaccord Genuity cut its target price to $1,590 from $1,810, and there's room for more adjustments lower, considering the average 12-month price target of $1,450.40 is a 23% premium to MSTR's current level of trading.

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