MSTR, XYZ Stocks Slide – Barclays Issues ‘Overweight’ Ratings But Pins Strategy Target Way Below Street

Barclays assigned a $130 price target to Strategy and a $100 target to Block, both representing a potential upside of 30 from Monday’s close.

• Shares of MSTR and XYZ fell in pre-market trading despite Barclays initiating coverage with 'Overweight' ratings.
• While both targets imply upside from current levels, Barclays' price target for Strategy was well below the broader Wall Street consensus.
• On Stocktwits, some retail traders expect Strategy shares to decline further, while others remain optimistic about Bitcoin's long-term outlook tied to the CLARITY Act.

Shares of Michael Saylor-backed Strategy (MSTR) and Jack Dorsey-led Block (XYZ) dropped in pre-market trade on Wednesday amid the broader sell-off in stocks despite getting an ‘Overweight’ rating from Barclays.

The firm gave MSTR stock a price target of $130 and XYZ stock a price target of $100, as per a note to investors cited by TheFly. It said the broader sector reset was aimed at identifying “durable franchises” positioned for long-term growth as Barclays initiated coverage of the U.S. payments and fintech industry.

While both price targets represent an upside of around 30% for both stocks, the $130 price target on MSTR is grossly below the analyst average of over $303, as per Koyfin data. The $100 price target on XYZ sits only 8% higher than the average target of $91.91. 

MSTR stock fell nearly 3% in pre-market trade after a drop of over 3% in the previous session. On Stocktwits, retail sentiment around Strategy shares fell to ‘bullish’ from ‘extremely bullish’ territory over the past day, accompanied by chatter at ‘normal’ levels.

Broader Market Weakness Weighs On Fintech Stocks

XYZ stock also slumped in pre-market trade by nearly 1%, alongside the broader sell-off, in which the SPDR S&P 500 ETF Trust (SPY) fell 0.56%, and the tech-heavy Nasdaq-100-tracking Invesco QQQ Trust Series 1 (QQQ) fell 0.65%. 

Retail sentiment on Stocktwits around XYZ remained in the ‘bullish’ zone over the past day, accompanied by chatter at ‘high’ levels. 

Retail Traders Remain Divided On MSTR Stock’s Next Move

Some retail traders on Stocktwits forecast that MSTR shares were likely to fall further, with one investor forecasting a dip to $50.

However, others reiterated their belief that Bitcoin (BTC) is likely to rise once the CLARITY ACT gets passed, backing Saylor’s decision to sell the apex cryptocurrency. 

Bitcoin’s price fell below $62,000 on Wednesday morning, with Solana (SOL) and Dogecoin (DOGE) posting the largest losses among major cryptocurrencies. Retail sentiment around BTC on Stocktwits remained in ‘bullish’ territory over the past day, with chatter steady at ‘normal’ levels. 

Bitcoin’s price has fallen around 30% this year, while MSTR’s stock is on track to be down 40% if pre-market losses hold. Meanwhile, XYZ’s stock has gained nearly 20% in the same time period.

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