Strategy Inc. (NASDAQ:MSTR) shares rose as much as 8% to $274.52 on Friday as investors cheered record earnings and growing speculation about the company's entry into the S&P 500 index.
Analysts Cite Strong Fundamentals And S&P Potential
The company reported operating income of $3.9 billion and net income of $2.9 billion in the third quarter, a dramatic turnaround from last year's losses.
For the first nine months of 2025, Strategy recorded $12 billion in operating income and $8.6 billion in net income, with earnings per share rising to $27.71 from a loss of $2.71 a year earlier.
CEO Phong Le said during the earnings call that the company is "actively laying the groundwork for credit securities in international jurisdictions," signaling expansion into global markets.
For the second consecutive quarter, Strategy has qualified for potential inclusion in the S&P 500 — a milestone that could trigger substantial institutional inflows.
Stock Rebounds From Multi-Month Support
MSTR Price Forecast (Source: TradingView)
The stock rebounded sharply after testing the ascending support line near $260, a level that has consistently held since late 2024.
This recovery came after a brief dip below the 0.236 Fibonacci retracement near $305, signaling oversold conditions that attracted new buying interest.
The move also reinforces the long-term ascending triangle pattern forming since early 2024, with bulls defending the lower boundary multiple times.
If momentum holds above $275–$280, analysts see the next resistance near $294, followed by $305, where both the 20-day EMA and Fibonacci pivot converge.
Saylor's Focus Shifts To Debt Reduction And Credit Expansion
Executive chairman Michael Saylor reaffirmed plans to eliminate all convertible debt by 2029 while expanding Bitcoin (CRYPTO: BTC)-backed credit instruments internationally.
He highlighted that Strategy's multiple to net asset value (mNAV) remains around 1.25, its weakest level since early 2024, suggesting the stock is undervalued relative to its holdings.
Saylor attributed this compression to a maturing bitcoin market, the success of BlackRock's (NASDAQ:IBIT), and the stabilizing influence of derivatives markets, but said he expects mNAV to improve as digital credit offerings grow.
Technical Setup Points To Recovery Path
MSTR's technical outlook remains cautiously optimistic. The stock trades below key EMAs which define its near-term ceiling.
A close above $318 could confirm a breakout toward $350, while failure to maintain $260 support risks a pullback to $230, the year's major accumulation base.
RSI has improved to 40.5 from oversold levels near 35, while the narrowing MACD histogram indicates waning selling pressure and early reversal signals.
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