CoinVoice has recently learned that, according to CoinDesk, analysts explain the recent stock price trend of MicroStrategy (MSTR) through Soros's Theory of Reflexivity. This theory posits a two-way interaction between investor expectations and prices: optimistic investor sentiment drives up stock prices, and rising stock prices allow companies to finance at lower costs, improving performance and further boosting stock prices, creating a virtuous cycle. However, when this cycle is broken, price adjustments may exceed market expectations.
The stock price of MicroStrategy (MSTR) has continued to decline after being included in the Nasdaq 100 index, at one point dropping to the $300 mark, nearly 45% down from its historical high of $543 at the end of November, and about 30% down from $430 after the Nasdaq 100 inclusion announcement on December 14. Analysts point out that several market signals suggest that MSTR may have formed a short-term top, including: the company's stock price skyrocketing nearly 8 times this year, founder Michael Saylor frequently appearing and promoting a new metric for 'Bitcoin yield', and several companies beginning to emulate its Bitcoin reserve strategy.
Despite the significant recent correction, MSTR's long-term performance remains impressive. The stock is still up more than 400% this year, with a cumulative increase of 20 times since it started implementing its Bitcoin reserve strategy in August 2020. Most analysts believe that MSTR has experienced similar magnitude corrections multiple times in the past three years, but ultimately ended in increases. [Original link]