Bernstein Affirms Strategy Inc.’s (MSTR) Financial Stability, Sees Evolution into Bitcoin-Focused Operating Business

Strategy Inc. (NASDAQ:MSTR) is one of the stocks that will double in 2026. On December 8, Bernstein lowered the firm’s price target on Strategy to $450 from $600 with an Outperform rating on the shares. Bernstein maintains its conviction that market concerns regarding Strategy’s financial stability are overstated. The firm believes that Strategy is rapidly evolving into a Bitcoin-reserved financial operating business, focusing on delivering fixed income yield and savings products directly to investors.

In Q3 2025, Strategy highlighted substantial growth driven by its dominant Bitcoin treasury strategy. The company reported $3.9 billion in operating income, $2.8 billion in net income, and EPS of $8.43. EPS, however, missed Street estimates by $1.25. The company also generated $128.69 million in quarterly revenue, which was a 10.87% rise year-over-year, and beat expectations by $11.76 million.

Bernstein Affirms Strategy Inc.'s (MSTR) Financial Stability, Sees Evolution into Bitcoin-Focused Operating Business

Strategy maintained an optimistic outlook and reaffirmed its full-year 2025 guidance with an operating income target of $34 billion, a net income target of $24 billion, and an EPS target of $80. However, the company’s heavy reliance on Bitcoin introduces significant volatility and risk, and the high leverage inherent in its amplification strategy could pose risks if the Bitcoin market deteriorates.

Strategy Inc. (NASDAQ:MSTR), together with its subsidiaries, operates as a bitcoin treasury company in the US, Europe, the Middle East, Africa, and internationally.

While we acknowledge the potential of MSTR to grow, 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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Disclosure: None. This article is originally published at Insider Monkey.