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Yahoo
32 minutes ago
- Yahoo
Strategy Falls 15% in a Month: Hold or Fold the MSTR Stock?
Strategy MSTR shares have declined 14.7% in the past month, underperforming the Zacks Computer - Software industry and the Zacks Computer and Technology sector's returns of 0.3% and 3%, is the world's largest bitcoin treasury company, holding 628,791 bitcoins as of July 29, 3% of all bitcoin in existence. MARA Holdings MARA, Riot Platform RIOT and Tesla TSLA are other well-known companies that hold bitcoins in their respective balance sheets. As of June 30, MARA Holdings, Riot Platforms and Tesla had 49,951, 19,273 and 11,509 bitcoins, shares have underperformed MARA Holdings, Riot Platform and Tesla over the past month. While Tesla has climbed 2.1%, MARA Holdings and Riot Platform shares have dropped 14.5% and 12.3% over the same time frame. MSTR Stock's Performance Image Source: Zacks Investment Research Can Growing Bitcoin Holding Aid MSTR's Prospects? Strategy benefits from the Trump administration's announcement of the establishment of a strategic bitcoin reserve. Bitcoin, the most popular cryptocurrency, has been soaring due to increasing acceptance as a non-sovereign asset, as well as higher institutional and corporate adoption. President Trump recently issued an executive order directing the Labor Department to explore allowing 401(k) retirement plans to hold cryptocurrencies and other alternative assets, which is expected to drive retail adoption of now expects to achieve a bitcoin yield of 30% and $20 billion in gains, assuming the bitcoin price hits $150,000 at the end of the year. Bitcoin yield has hit 25% year to date and was 19.7% at the end of the second quarter of 2025. In dollar terms, bitcoin gain was $9.5 billion at the end of the second quarter and $13.2 billion year to 2025, Strategy expects operating income of $34 billion, net income of $24 billion and earnings of $80 per share, based on a bitcoin price outlook of $150,000 at the end of the year. The company's estimated 2025 net income of $24 billion is better than Riot Platforms' and Mara Holdings' net loss of $0.5 billion and $0.8 billion, respectively. Disciplined Capital Raising Bodes Well for MSTR The company's disciplined approach to capital raising through preferred equity offerings — Strike (STRK), Strife (STRF), STRD (Stride) and STRC (Stretch) — is a key catalyst. STRK offers an 8% dividend coupon plus MSTR exposure through conversion rights, and has an effective yield of 7.5% as of July 29. STRF offers a 10% cash dividend coupon with enhanced payment protection features and has had an effective yield of 8.7% as of July 29. Stride offers a 10% cash dividend coupon with strong collateral coverage and has an effective yield of 11.9%. Stretch offers a variable monthly cash dividend with an effective yield of 9.5% as of July has issued $10.7 billion in equities and $7.6 billion in fixed income securities year to date. Among fixed income securities, the company raised $2 billion, $0.94 billion, $2.52 billion, $1.13 billion and $1.02 billion through convertible notes, STRF, STRC, STRK and STRD, respectively. Earnings Estimates Revision Trend Steady for MSTR For third-quarter 2025, the Zacks Consensus Estimate for MSTR's loss has been unchanged at 11 cents per share over the past 30 days. The company reported a loss of $1.56 in the year-ago quarter. MicroStrategy Incorporated Price and Consensus MicroStrategy Incorporated price-consensus-chart | MicroStrategy Incorporated Quote For 2025, the Zacks Consensus Estimate for MSTR's loss has been unchanged at $15.73 per share over the past 30 days. The company reported a loss of $6.72 per share in 2024. Here's Why You Should Avoid MSTR Stock Now Strategy shares are overvalued, as suggested by the Value Score of F. In terms of Price/Book, Strategy is trading at 2.15X compared with Mara Holdings' 1.24X and Riot Platforms' 1.38X, suggesting a premium valuation. MSTR vs. MARA Valuation Image Source: Zacks Investment Research MSTR vs. RIOT Valuation Image Source: Zacks Investment Research The MSTR stock is currently trading below the 50-day moving average, indicating a bearish trend. MSTR Stock Trades Below 50-Day SMA Image Source: Zacks Investment Research Strategy benefits from its growing bitcoin holdings and increasing subscription revenues. However, challenging macroeconomic conditions and uncertainty about tariffs increase volatility in bitcoin trading. Stretched valuation is another currently has a Zacks Rank #4 (Sell), which implies that investors should avoid the stock right can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report Riot Platforms, Inc. (RIOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
40 minutes ago
- Business Insider
Judge Rules that Tesla (TSLA) Will Face Class Action Lawsuit over FSD Package
A U.S. judge has ruled that EV maker Tesla (TSLA) will face a class action lawsuit in California from drivers who say that Elon Musk misled them for years about the self-driving abilities of Tesla's vehicles. Indeed, the case centers on the Full Self-Driving (FSD) package, with claims that Tesla didn't have the sensors needed for full autonomy and never successfully showed a vehicle completing a long-distance autonomous drive. Because these are issues that affected many customers in the same way, the judge decided the case could move forward as a group lawsuit. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Judge Rita Lin explained that many buyers likely saw Tesla's marketing between October 2016 and August 2024, which included the 'Autopilot' section of its website, blog posts, earnings calls, and Elon Musk's 2016 press conference. She noted that while most automakers rely on dealers and wide-scale ads, Tesla's direct-to-consumer model made it more likely that potential buyers visited its site and were influenced by those claims. Tesla argued that not everyone saw the statements or found them important, but the judge said Tesla's unique marketing made this case different from most. Interestingly, the certified class includes people who bought the FSD package during specific timeframes and chose not to be bound by Tesla's arbitration agreement. However, the judge excluded buyers of the Enhanced Autopilot package after saying that it didn't promise full self-driving capabilities, so Tesla's alleged misstatements wouldn't have affected their decisions. The case, officially titled In re Tesla Advanced Driver Assistance Systems Litigation, comes as regulators continue to investigate whether Tesla's self-driving tech is safe, especially since it's a key part of the company's future robotaxi plans. What Is the Prediction for Tesla Stock? Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 15 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $307.23 per share implies 7.7% downside risk.
Yahoo
an hour ago
- Yahoo
This car is the next big thing in driving — and you can invest in it right now
Move over AI. The next big tech-investing trend is AV. The market for autonomous vehicles (AV) is expected to grow ninefold to almost $700 billion by 2040, up from $78 billion last year. That's the ambitious forecast in a comprehensive AV investing report recently published by Bank of America called 'AV you can drive my car — Autonomous Vehicle Primer.' Emerging tech-sector growth estimates like these can be notoriously wrong. But even if these estimates are off by half, they still suggest phenomenal growth. In short, AVs look like one of the best secular tech trends to invest in. 'I can only rely on me': How do I protect myself from my parents' nursing-home bills? My aunt barely spends any money. Will we receive the contents of her safe-deposit box when she dies? Nearly 50% of adults are now ordering kids' meals. 'It's economical and it's filling.' My wife and I are in our 50s and have $11 million. We're not leaving it to our kids. Is that wrong? Switch Auto Insurance and Save Today! Great Rates and Award-Winning Service The Insurance Savings You Expect Affordable Auto Insurance, Customized for You Here are the two main factors that will drive this growth, and some of the best ways to invest in this trend, according to Bank of America and three money managers I recently spoke with. 1. Consumers will get more comfortable with AV safety: People aren't fully sold on AVs. Just 13% of U.S. adults trust AV technology, according to a recent poll from AAA. About half believe that safety concerns will stall widespread AV adoption. But as robotaxi operators including Alphabet's GOOGL GOOG Waymo and Tesla TSLA rack up more miles, they're building out convincing safety data. As of last April, robotaxis had travelled 186 million miles — equivalent to a round trip to Venus. Waymo's paid rides jumped almost 60-fold in the past 18 months to more than 1 million a month in April. Waymo says its robotaxis have 92% fewer injury claims compared to human-driven cars. Waymo currently offers full commercial service in five cities: Austin, Texas; Los Angeles; San Francisco; Phoenix; and Atlanta. Rollouts to new cities will continue, getting consumers even more comfortable with AV over time. Tesla, meanwhile, is operating in Austin on a limited basis. Its San Francisco Bay Area ride-hailing effort is underway, but isn't fully autonomous. 2. Robotaxi rides are getting cheaper: Eliminating drivers will cut the cost-per-mile for taxi service by half, Bank of America analysts predict. Tesla's AV cost per mile could be $1.58 compared to $3.41 for ride-hail services, a result of less expensive sensors, computing power and equipment, BofA says. In China, for example, AV providers Baidu BIDU and Pony AI PONY recently said costs of their latest-generation robotaxis are 50% to 70% lower than prior models due to declines in the same costs. Tesla: Tesla's AVs are far cheaper than the ones used by Waymo, giving it a competitive advantage, says Joe Dennison, a growth-fund manager at Zevenbergen Capital. Waymo buys Jaguars and adds sensors and other hardware to make them into AVs, at a cost of more than $200,000 per car, he says. In contrast, Tesla's Model Y costs Telsa $30,000 to build. 'Tesla has the best chance to win. They can undercut on price,' Dennison said in a recent interview. Another plus is that Tesla's Model Y has been designed as an autonomous vehicle. That means it works better than converted cars offered by General Motors GM and Ford F. 'You need vertical integration to make sure all the parts talk to each other,' Dennison says. Beyond the Model Y, Tesla has plans to roll out a dedicated robotaxi car in 2026 called the Cybercab. At some point Tesla may also generate AV revenue by licensing its AV technology to other car makers. Tesla critics say the stock looks rich and could be volatile near term. But that's the wrong time frame to consider, Dennison says. 'You're buying it for the next five years, not the next five months.' Dennison is worth listening to because the Virtus Zevenbergen Innovative Growth Stock Fund SCATX and Virtus Zevenbergen Technology fund DRGTX he co-manages have both outperformed their Morningstar mutual-fund category by 6.5-7.5 percentage points annualized over the past three years. Meanwhile, Waymo contributes relatively little revenue to its giant parent company Alphabet, so it is tough to get meaningful exposure here. Uber Technologies: Uber UBER is positioning itself as the tech platform that supports the rollout of AV robotaxis. Uber is also getting into the robotaxi business itself — partnering with autonomous-driving company Nuro and EV-maker Lucid Group LCID to launch a service in a 'major U.S. city' later this year. Uber offers robotaxi providers broad access to customers so they can scale rapidly. 'The fastest way for an AV company to get to profitability is to have the cars working most of the time, and the best way to do that is by listing their cars on Uber,' Dennison says. Waymo partners with Uber in Austin and Atlanta. Bidu partners with Uber in Asia and the Middle East. Lyft LYFT is ramping up its own robotaxi effort, beginning in Atlanta and Dallas, but currently does not have a sizeable global footprint — making Uber a better robotaxi play. China's EV and AV sales are growing rapidly and that will continue. By 2030, 80% of cars in China could have some form of self-driving capability, and by 2034 the country will have twice as many robotaxis as the U.S., Bank of America's report predicts. Pony AI provides a way to invest in China's AV growth, says William Blair Investment Management global equity research analyst Pierre Horvilleur. Pony offers robotaxis and robotrucks. Horvilleur says Pony currently has around 1,000 robotaxis in China, and the company is expanding into Europe. Bank of America predicts that Pony's robotaxi fleet will rise to 138,000 vehicles by the end of 2030. That growth supports BofA's $21 price target for the stock. Next, consider BYD CN:002594 BYDDY. 'They are democratizing autonomous driving for the masses,' Horvilleur says. 'They are making it standard on all their vehicles.' BYD is also a low-cost producer. It sells a car with autonomous driving capabilities for as little as $10,000. 'They offer extremely compelling value. That is what wins in emerging markets which is their primary target,' Horvilleur says. The company is expanding into Europe, but currently has no plans to enter the U.S. market. Another portfolio candidate is Xiaomi HK:1810 XIACF — an emerging AV play in China. Xiaomi is a smartphone maker, with cars bringing in about a quarter of its revenue. Its SU7 EV, launched last year, is a popular vehicle in China. The SU7 is not fully autonomous, but the company is investing heavily to get there. A potential catalyst is the near-term launch of a new model called YU7. AVs are literally supercomputers on wheels. But well over half of AV driving happens in data centers, which assist with learning and decision-making. As AV driving expands, the cars will require bigger AI models and data storage. Bank of America estimates AV-related AI infrastructure could grow 10 times and data-storage needs will grow nearly 20-fold over the next three years as AV usage picks up. 'The processing power in data centers needs to grow equivalently to efficiently train and run the models,' says Bank of America. This will drive demand for chips and software provided by Nvidia NVDA, Qualcomm QCOM and NXP Semiconductors NXPI. Rather than attempting to pick a robotaxi winner, Gabelli Funds portfolio manager and auto-sector expert Brian Sponheimer prefers to go with the picks-and-shovel plays. For that, he likes Aptiv APTV, which provides the sensor and radar technology and software that helps AVs by collecting data, which is processed to help the cars drive. Bank of America analysts recommend Infineon IFNNY, which sells chips and microcontrollers that support AV sensors and driver assistance systems. If you agree that AVs will take off over the next several years, you should also consider these two stocks. Also read: This Tesla rival's stock soars as Uber plans big investment, launch of robotaxi service More: The strange reason that EVs are more likely to cause motion sickness I'm a senior who barely survives on $1,300 a month. No way could I live on $1,000. Gold has crushed stocks, bonds and even bitcoin in 2025. This banking giant just got more bullish. My stepmother's lawyer called us 'greedy' for fighting for our father's estate. When will it end? Teachers spending big on classroom supplies can look forward to broader tax breaks — but there's a catch
