“Will the US Fed cut rates?” seems to be the question everyone is asking after the release of the January US jobs report on February 11, which showed a stronger-than-expected labor market. While an improving labor market would normally be a hawkish signal, several economists still believe rate cuts remain in play for the latter half of the year.
One of those economists is Bloomberg Economics’ Anna Wong, who had this to say about the release:
”The January payrolls report lessens the urgency for the Fed to cut rates. But as we expect inflation to ease in coming months – in particular, we expect a more subdued reading on January CPI, due Feb. 13, than the consensus forecast – we think policymakers have room to cut rates to support the labor-market recovery. In all, we expect the Fed to cut rates by 100 basis points this year.”
CIBC Capital Markets had a similar view:
”The signal from this data is clear: this is evidence in favor of the job market stabilizing and supports the Fed’s wait-and-see approach. We’re pushing back the timing of our Fed call, and now expect the first cut in June, but continue to pencil in two cuts for the year.”
Kay Heigh of Goldman Sachs Asset Management echoed this sentiment:
”The labor market is showing some tentative signs of re-tightening, although there remains a way to go. The FOMC’s gaze instead will turn to the inflation picture with the economy continuing to perform above expectations. We still see room for two more cuts this year; however, an upside surprise in the CPI on Friday could tilt the balance of risks in a hawkish direction.”
These rate cuts would be good news for the stock market, as lower rates would lead to higher trading multiples for stocks, according to Dan Niles of Niles Investment Management in an interview with CNBC’s Money Movers on January 31.
A higher stock market valuation would benefit stocks with the highest beta the most. As such, we will now take a look at 13 of the best high-risk (a.k.a. high beta), high-reward stocks to invest in.
Our Methodology
We shortlisted stocks that trade in the US market, with at least $2 billion in market capitalization, at least three analysts covering them, a 5-year beta of at least 1.5x, and at least 25% median projected upside from analysts. We then filtered the list to only contain stocks with at least 15 hedge fund holders, according to Insider Monkey’s proprietary hedge fund database, which tracks 978 hedge funds as of Q3 2025. Finally, we selected the 13 stocks with the highest projected upsides.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: All data presented are as of 12 February 2026.
13. Roblox Corporation (NYSE:RBLX)
Upside: 46.36%
5Y Beta: 1.63x
Number of Hedge Fund Holders: 90
Roblox Corporation (NYSE:RBLX) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
On February 9, Roth Capital upgraded its recommendation on Roblox to a Buy (from Neutral) and bumped up its target price on the stock by 7.7% to $84 (from $78). Better-than-expected guidance from management regarding bookings growth for 2026 onwards (above 20% annually over the next several years) was the main catalyst for this rating upgrade. The firm added that RBLX’s improving development tools, which lead to the production of higher-quality games and, in turn, higher revenue (a “strong, sustainable virtuous cycle,” as Roth’s analyst described it), are key to sustaining growth. Roth Capital concluded its research note by reiterating that Roblox is an attractive investment at the current share levels.
Roblox released its Q4-2025 results and 2026 guidance on February 5. According to this release, daily active users (DAU) grew 69% YoY to 144 million, while hours engaged grew even faster, up 88% YoY to 35 billion, suggesting existing users spent more time. The robust growth in operational metrics translated into rapid topline growth, with revenue up 43% YoY to $1.4 billion and bookings up 63% YoY to $2.2 billion.
The company expects the strong Q4 figures to carry over to 2026. Management guidance indicates revenue growth of 32% to 37% in Q1-2026 and 23% to 29% for the full year 2026. Bookings, meanwhile, are projected to grow 40% to 44% in Q1-2026 and 22% to 26% for the full year 2026.
Roblox Corporation (NYSE:RBLX) provides online gaming services through its platforms: Roblox Client, Roblox Studio, and Roblox Cloud. The company is based in San Mateo, California, and was founded in March 2004 by Erik Cassel and David B. Baszucki.
12. Affirm Holdings Inc. (NASDAQ:AFRM)
Upside: 46.68%
5Y Beta: 3.58x
Number of Hedge Fund Holders: 60
Affirm Holdings Inc. (NASDAQ:AFRM) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
On February 9, Mizuho reduced its target price on Affirm Holdings by 16.7% to $95 (from $114) while keeping an Outperform call on the stock. Dan Dolev, the analyst from Mizuho, views the recent selloff in AFRM as unjustified. He cited two positive catalysts that the market might be overlooking: AFRM’s recently announced exclusive partnership with Intuit and conservative FY2026 guidance.
For context, on February 2, Intuit and Affirm announced a multi-year deal wherein Affirm would become the exclusive built-in pay-over-time solution in QuickBooks Payments. This deal would give Affirm immediate access to the millions of small and mid-market businesses that use QuickBooks, with more than $2 trillion in invoices per year. Pat Suh, Senior Vice President of Revenue at Affirm, had this to say about the deal:
”Millions of SMBs rely on QuickBooks to simplify operations, keep their cash flow on track, and grow their business. Integrating Affirm directly into QuickBooks Payments will give these businesses another lever for growth — offering customers a transparent, responsible way to pay over time while the business continues to get paid upfront.”
Three days later, on February 5, Affirm released its Q2 FY2026 earnings report, which showed strong growth across the board. Gross merchandise volume grew 36% YoY to $13.8 billion (from $10.1 billion), active consumers grew 23% YoY to 25.8 million (from 21.0 million), while transactions per active customer grew 20% YoY to 6.4x (from 5.3x). Combined, these operational results yielded a 30% YoY growth in revenue, which reached $1.1 billion (from $0.9 billion).
Management also provided its guidance on revenue for the 2nd half of the fiscal year. For Q3-2026, they expect revenue to be between $0.97 billion and $1.00 billion, implying a YoY growth rate of 23.9%-27.7%. For Q4-2026, they expect revenue to be between $1.06 billion and $1.09 billion, implying a YoY growth rate of 21.0%-24.4%.
Affirm Holdings, Inc. (NASDAQ:AFRM) operates a payment network across Canada, the United States, and internationally. The company’s platform includes a consumer-focused app, a point-of-sale payment solution for consumers, and merchant commerce solutions. Affirm Holdings, Inc. was incorporated in 2012 and is based in San Francisco, California.
11. e.l.f. Beauty Inc. (NYSE:ELF)
Upside: 54.59%
5Y Beta: 1.68x
Number of Hedge Fund Holders: 43
e.l.f. Beauty Inc. (NYSE:ELF) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
On February 9, TD Cowen trimmed its target price on e.l.f. Beauty by 9.1% to $100 (from $110), while retaining its Buy recommendation on the stock. Oliver Chen, the analyst from TD Cowen who made this update, said that this TP change was prompted by an update of his forecast, following the release of Elf Beauty’s Q3-FY2026 results. He added that while Q3 sales grew 38% YoY, he expects revenue growth to taper off to the low single digits moving forward.
ELF released its Q3-FY2026 results on February 4, which were headlined by the 38% YoY net sales growth. The successful launch of its “rhode” brand in Sephora in the U.K. contributed the majority of this growth, to the tune of 36 percentage points. The remaining 2 percentage points were attributed to price increases in its existing product lines. This growth decomposition implies that there was virtually no organic volume growth, which is likely what Oliver Chen used as a basis when he said that he expects revenue growth to return to the low single digits in the coming years.
ELF’s management also presented its guidance for the rest of the fiscal year. They now expect full-year net sales to reach $1,600 million to $1,612 million (vs. their initial outlook of $1,550 million to $1,570 million), which would represent an 18.0% to 19.5% YoY average growth for the fiscal year. They expect “rhode” to contribute $260 million to $265 million to revenue.
e.l.f. Beauty Inc. (NYSE:ELF) is a beauty/cosmetics company, providing eye, lip, and skin care products through its brands: e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, Key Soulcare, and (most recently) rhode.
10. Praxis Precision Medicines Inc. (NASDAQ:PRAX)
Upside: 58.04%
5Y Beta: 2.90x
Number of Hedge Fund Holders: 33
Praxis Precision Medicines Inc. (NASDAQ:PRAX) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
Guggenheim, on February 10, raised its target price on Praxis Precision (PRAX) by 5.3% to $800 (from $760) and reiterated its Buy recommendation on the stock. The update comes as the firm reassessed its estimates, through consultations with key opinion leaders, on the potential impact of Ulixacaltamide, an orally administered drug for essential tremors (ET). It now thinks that the drug can take $5 billion to $10 billion in peak sales from the $15+ billion essential tremors market. The firm added that Praxis Precision remains one of its top picks for 2026.
Ulixacaltamaide was granted “Breakthrough Therapy Designation” by the US Food and Drug Administration (FDA) last December 2025, following a successful Essential3 program. Marcio Souza, president and chief executive officer of Praxis, had this to say about the grant:
“The granting of the Breakthrough Therapy Designation for ulixacaltamide, based on the Essential3 program, further underscores its potential to address the substantial unmet need in patients with ET.”
This grant will enable the FDA to prioritize the review of this drug, thereby expediting its go-to-market timeline. Praxis now plans to submit a “New Drug Application (NDA)” by February 2026, as mentioned by Marcio Souza in a statement:
“We recently completed a series of positive interactions with the FDA, that, together with this BTD, are enabling us to advance this promising treatment faster to patients. We are diligently preparing for the filing of the ulixacaltamide NDA, which we expect in early 2026.”
Praxis Precision Medicines Inc. (NASDAQ:PRAX) is a clinical-stage biopharma company that focuses on developing therapies targeting central nervous system disorders and genetic epilepsies. The company is based in Boston, Massachusetts, and was founded in September 2015 by Kiran Reddy, David Goldstein, and Steven Petrou.
9. Dave Inc. (NASDAQ:DAVE)
Upside: 63.31%
5Y Beta: 3.90x
Number of Hedge Fund Holders: 45
Dave Inc. (NASDAQ:DAVE) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
Andrew Jeffery, analyst at William Blair, initiated the firm’s coverage of Dave Inc. (DAVE) on February 9, with an Outperform call. While he did not give a definitive target price, he told investors in a research note that DAVE could disrupt the traditional banking industry, “reimagining the role of financial intermediaries in short-term consumer credit,” by offering short-duration, high-velocity, and low-balance unsecured loans. He estimates that this cash advance product has a total addressable market of 185 million, providing the company with a significant long-term monetization opportunity.
This coverage initiation comes a couple of days after DAVE released a preview of its 4th-quarter results on February 5. According to the release, it grew its operating revenue by 62% YoY to $164 million in Q4 and 60% YoY to $554 million for the full year. Both figures are ahead of management’s most recent guidance from November 2025 of $155 million for Q4 and $546 million for the full year.
Adjusted EBITDA showed a similar beat. In Q4, EBITDA reached $73 million (vs. $63 million guidance), implying a growth rate of 118% YoY. For the full year, EBITDA reached $227 million (vs. $217 million guidance), implying a growth rate of 162% YoY.
DAVE also emphasized that its 28-day past-due (DPD) rate for Q4 was between 1.95% and 2.00%, which outperformed the company’s guidance of 2.10%.
Dave Inc. (NASDAQ:DAVE) is a digital bank that provides short-term cash advances through its flagship ExtraCash product. The company is based in Los Angeles, California, and was founded in October 2015 by Jason Wilk, Paras Chitrakar, and John Wolanin.
8. Oracle Corporation (NYSE:ORCL)
Upside: 75.61%
5Y Beta: 1.63x
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
Bernstein, on February 9, trimmed its target price on Oracle by 7.7% to $313 (from $339), but retained its Outperform call on the stock. Uncertainties regarding how the company would fund the construction of the artificial intelligence data centers it would need to meet the contracts signed in 2025 remain as a major overhang and triggered the firm to adjust its target price.
For context, OpenAI and Oracle signed a $300 billion deal in September 2025. Under this cloud services agreement, Oracle will provide OpenAI with computing power (worth 4.5 gigawatts of annual power capacity) for five years, starting in 2027 and ending in 2032.
To help fund this deal, Oracle announced on February 1 that it plans to raise $45 billion to $50 billion in 2026, through a mix of debt and equity. Around half of this raise will come via equity, ~$20 billion of which will be in common shares (through the company’s recently authorized at-the-market equity program) and the remaining in mandatory convertible preferred shares. The other half of the raise will be through debt, in the form of a one-time issuance of investment-grade senior unsecured bonds in the first half of 2026.
Bernstein estimates that this planned $45 billion to $50 billion raise is enough to cover Oracle’s funding needs until the end of fiscal year 2028.
Oracle Corporation (NYSE:ORCL) provides information technology-related products and services to enterprises through its main business segments: Cloud and License, Hardware, and Services. The company is based in Austin, Texas, and was founded in June 1977 by Lawrence Joseph Ellison, Robert Nimrod Miner, and Edward A. Oates.
7. Spotify Technology S.A. (NYSE:SPOT)
Upside: 79.70%
5Y Beta: 1.67x
Number of Hedge Fund Holders: 116
Spotify Technology S.A. (NYSE:SPOT) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
On February 11, JPMorgan trimmed its target price on Spotify by 13.0% to $700 from $805, while retaining an Overweight call on the stock. The firm thinks that SPOT’s recent subscription price increases will mitigate the impact of rising royalty costs in 2026. It also believes that investor sentiment regarding AI’s impact on Spotify is overdone.
This target price update comes a day after Spotify released its Q4 2025 earnings report on February 10. The results showed above-guidance user growth, with total monthly active users (MAUs) growing 11% YoY to 751 million (vs. 745 million guidance) and premium subscribers growing 10% YoY to 290 million (vs. 289 million guidance). This user growth translated into 6% YoY revenue growth, with total revenue reaching €4.5 billion (vs. €4.5 billion guidance). Premium subscriptions drove this growth, growing 8% YoY to €4.0 billion and offsetting the drag from Ad-supported revenue, which fell 4% YoY to €0.5 billion.
As for profitability, gross profit growth outpaced revenue growth at 10% YoY to €1.50 billion (from €1.35 billion), thanks to a 90-basis-point improvement in gross margins YoY (150-basis points QoQ) to 33.1%. Operating profit followed a similar trend, growing 47% YoY to €0.70 billion (from €0.58 billion) due to a 430-basis-point expansion in operating margins (190-basis points QoQ) to 15.5%.
Spotify’s management also presented its outlook for the 1st quarter of 2026. They expect to add eight million new MAUs, which would bring the total MAU to 759 million. Three million of these new MAUs will be premium subscribers, bringing the total premium user base up to 293 million. Revenue is expected to be flat quarter-on-quarter at €4.5 billion due to Forex movements.
Spotify Technology S.A. (NYSE:SPOT) is a leading digital music streaming platform. The company is based in Luxembourg and was founded in December 2006 by Daniel Ek and Martin Lorentzon.
6. Unity Software Inc. (NYSE:U)
Upside: 81.75%
5Y Beta: 2.09x
Number of Hedge Fund Holders: 74
Unity Software Inc. (NYSE:U) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
On February 12, Wedbush cut its target price on Unity Software by 18.9% to $30 (from $37) but maintained an Outperform rating on the stock. Soft Q1 2026 guidance (despite decent Q4 2025 results), the threat of artificial intelligence, and a shift in strategy were the main concerns for the firm, leading to the target price change.
This research update came a day after Unity released its Q4 2025 earnings on February 11. The results showed revenue growing 10% YoY to $503.1 million (vs. $457.1 million). Both the Create Solutions (8% YoY growth to $164.9 million from $152.2 million) and Grow Solutions (11% YoY growth to $338.2 million from $304.9 million) segments contributed to this result. Adjusted EBITDA, meanwhile, outpaced revenue, growing 25% YoY to $125 million (from $106 million).
The company’s management also provided its guidance on Q1 2026. They expect Q1 revenue of $480 million to $490 million, below street estimates of $492 million. These revenue figures imply a YoY growth rate of between 10.3% and 12.6%, but a flat quarter-on-quarter growth rate.
As for the impact of artificial intelligence, Google on January 29 rolled out access for Project Genie, an “experimental research prototype [which] lets users create, explore, and remix their own interactive worlds.” Since this release, Unity’s stock price has fallen 44.2%.
Unity Software Inc. (NYSE:U) is a leading video engine developer based in San Francisco, California. The company was founded in 2004 by Joachim Ante and David Helgason.
5. GeneDx Holdings Corp. (NASDAQ:WGS)
Upside: 86.32%
5Y Beta: 2.02x
Number of Hedge Fund Holders: 34
GeneDx Holdings Corp. (NASDAQ:WGS) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
WellsFargo upgraded its rating on GeneDX to Overweight (from Equal Weight) on February 9, while retaining the target price at $155. The upgrade was driven primarily by price action and not by any fundamental change at the company, as the firm believes the stock’s 50%+ decline since December is an overreaction. GeneDX, the firm added, is an attractive investment at its current valuation, which heavily discounts the company’s “competitive moat and growth runway.” Finally, Wells Fargo expects the company’s expanded sales force and new markets to act as catalysts in the latter portion of 2026.
Year-to-date, GeneDx’s share price has fallen by up to 30.8%, with much of the decline occurring immediately after the company released its earnings preview on January 12. Their release showed Q4-2025 revenue growing 32% YoY to $121 million and full-year 2025 revenue growing 54% YoY to $427 million.
GeneDx’s management also provided its guidance for 2026. They expect full-year revenue to grow between 33% to 35% in 2026 to $540 million to $555 million. According to Dan Brennan at TD Cowen, the projected growth likely disappointed investors, who viewed the 33%-35% 2026 projection as too conservative compared with 54% growth in 2025.
Despite the recent price decline and the “disappointing” revenue growth guidance, Wells Fargo still likes GeneDx’s growth prospects for 2026. For one, the company announced last January 8 that it would begin selling its unique phenotype-informed, trio-based prenatal test (intended for pregnancies with fetal anomalies) starting in February. On the same day, the company announced its strategic partnership with Komodo Health, which will allow GeneDx to leverage Komodo’s patient insights to create a “longitudinal dataset for rare diseases.”
GeneDx Holdings Corp. (NASDAQ:WGS) is a health intelligence company that collects disease data sets and offers exome and genome testing to diagnose genetic diseases. The company is based in Stamford, CT, and was founded in October 2015 by Eric Schadt.
4. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Upside: 86.37%
5Y Beta: 2.65x
Number of Hedge Fund Holders: 56
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
Roth Capital cut its target price on Credo Technology on February 10 by 20.0% to $200 (from $250) but retained its Buy recommendation on the stock. The TP cut was driven primarily by falling investor sentiment sector-wide, which has led to lower valuation multiples for tech and software stocks. The drag from the lower industry valuation more than offset the above consensus earnings preview released by the company, which showed increasing unit demand as well as higher prices due to newer, longer-reach rack-to-rack AEC cabling.
This update from Roth Capital comes a day after CRDO’s management released a preview of its Q3-FY2026 earnings as well as an updated guidance on Q4 on February 9. The release showed Q3 revenue reaching $404 million to $408 million, exceeding both the street consensus of $342 million and the previous revenue guidance of $335 to $345 million. Moving forward, management expects revenue to grow in the mid-single digits quarter over quarter, translating to 200+% year over year. The full earnings report will be released on March 2.
Despite the positive revenue preview and guidance, Credo Technology’s stock is still down 14.8% year-to-date, which Roth Capital’s analyst attributed to “broader sector share moves.”
Credo Technology Group Holding Ltd (NASDAQ:CRDO) develops high-speed connectivity products and solutions for the data infra market (specifically optical and electrical Ethernet and PCIe applications), including SerDes chiplets, integrated circuits, and electrical cables. The company is based in George Town, Cayman Islands, and was founded in 2008 by Chi Fung Cheng and Yat Tung Lam.
3. CleanSpark Inc. (NASDAQ:CLSK)
Upside: 96.27%
5Y Beta: 3.50x
Number of Hedge Fund Holders: 34
CleanSpark Inc. (NASDAQ:CLSK) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
On February 9, Clear Street trimmed its target price on CleanSpark by 18.5% to $22 (from $27) but retained its Buy recommendation on the stock. The firm likes CLSK fundamentally, citing positive trends in high-performance compute demand. However, the recent slide in Bitcoin prices offset this positive sentiment.
This target price update comes right after CleanSpark released its Q1-FY2026 financial results on February 5 and its January 2026 operational metrics on February 4. The release showed Q1-FY2026 revenues growing 11.6% YoY to $162.3 million. As for the operational metrics, the company mined 1,821 units of Bitcoin, of which it sold 1,732 for total proceeds of $168.4 million (at an average price of $97,205).
Despite revenue growth, net income for the quarter swung to a loss of $378.7 million (vs. $246.8 million in Q1-FY2025), driven by mark-to-market losses on the company’s Bitcoin holdings (as of 31 December 2025, CLSK held 13,099 units of Bitcoin worth $1.15 billion). For reference, Bitcoin prices fell 23.3% to $87,509 (from $114,056) from 30 September to 31 December 2025.
CleanSpark Inc. (NASDAQ:CLSK) is a Bitcoin mining company with exposure to the data center industry. The company is based in Henderson, Nevada, and was founded in October 1987 by S. Matthew Schultz and Bryan Huber.
2. Galaxy Digital Inc. (NASDAQ:GLXY)
Upside: 112.77%
5Y Beta: 3.76x
Number of Hedge Fund Holders: 32
Galaxy Digital Inc. (NASDAQ:GLXY) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
On February 4, Goldman Sachs trimmed its target price on Galaxy Digital by 11.1% to $24 (from $27) and retained its Neutral call on the stock. Weaker-than-expected Q4-2025 results, mainly due to digital asset price depreciation, were the main trigger for this change in target price, according to James Yaro, the analyst from Goldman Sachs. He further added that despite the weak Q4, Galaxy Digital’s management remains positive about the company’s growth trajectory, in the long run, across the global markets and asset management segments.
This update from Goldman comes a day after GLXY released its 4th quarter 2025 results on February 3. The release showed that the company missed street estimates for both revenue ($10.37 billion actual vs. $16.60 billion analyst estimates) and loss per share ($1.08 actual vs. $0.92 analyst estimates). Falling crypto prices were the main culprit behind the weak quarter, as this decline affected two of the company’s major profit drivers (Digital Assets and Treasury & Corporate segments). For reference, Bitcoin prices fell 23.3% to $87,509 (from $114,056) from 30 September to 31 December 2025.
Gross profit from the digital assets segment dropped 84% quarter-on-quarter to $51 million in Q4 (from $318 million in Q3), as trading volume fell 40% QoQ and assets under management fell 25.6% QoQ to $11.40 billion (from $15.33 billion).
Gross profit from the treasury & corporate segment, meanwhile, swung to a loss of $454 million in Q4 (from a profit of $408 million in Q3), due to mark-to-market losses on the company’s net digital assets and investments. As of 31 December 2025, the company had $1.68 billion in these investments, consisting of $617 million in Venture & Fund Investments, $577 million in Bitcoin, $127 million in Ether, $88 million in Solana, and $273 million in other liquid investments and other token exposure.
Galaxy Digital Inc. (NASDAQ:GLXY) provides digital asset-related services (offering institutional trading, advisory, asset management, staking, self-custody, and tokenization) and data center infrastructure. The company is based in New York, New York, and was founded in 2018 by Michael Novogratz.
1. Strategy Inc (NASDAQ:MSTR)
Upside: 162.93%
5Y Beta: 3.45x
Number of Hedge Fund Holders: 43
Strategy Inc (NASDAQ:MSTR) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
On February 5, MSTR released its Q4-2025 earnings report, which delivered mixed results relative to analyst expectations. Revenue grew 1.9% YoY to $123.0 million (vs. street consensus of $118.5 million). Operating losses, meanwhile, reached $17.4 billion (vs. $1.0 billion in the prior year). On an after-tax basis, this operating loss translates to $12.4 billion in net losses (vs. $670.8 million in the prior year), yielding a loss per share of $42.93 (vs. $3.03 in the prior year).
Revenue was driven by strong growth in the subscription services and product licenses segments, which grew 62.1% YoY (to $51.8 million) and 26.3% YoY (to $59.6 million), respectively. Product support, however, was a drag, falling 16.9% YoY to $48.5 million. Other service revenues also fell slightly, by 1.8% YoY, to $14.9 million.
As for operating losses, the main drag was Bitcoin mark-to-market losses, which totaled $17.4 billion as Bitcoin prices fell 23.3% to $87,509 (from $114,056) during the quarter. Despite the unrealized losses from Bitcoin, the company continued to increase its stockpile, which has now reached 713,502 bitcoins at a cost basis of $54.26 billion (at an average cost of $76,052) as of February 1.
Strategy Inc. (NASDAQ:MSTR) is a publicly traded U.S. technology and Bitcoin treasury company that offers AI‑powered enterprise analytics software while holding Bitcoin as its primary treasury asset, providing investors with diversified exposure and business intelligence solutions. It rebranded from MicroStrategy in 2025.
While we acknowledge the potential of MSTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSTR and that has 100x upside potential, check out our report about this cheapest AI stock.
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