Over the weekend, Bitcoin (BTC-USD) fell to around $75,000 before rebounding. On Monday, Bitcoin continued to bounce back, but Strategy (MSTR) shares fell. This divergence is troubling.
Strategy holds over 710,000 Bitcoin at an average price of around $76,400. Crypto investors are questioning why they should hold the popular cryptocurrency by holding MSTR stock. The firm has preferred shares that pay a generous dividend. And although it has enough cash on hand to cover the payments, this arrangement is shaky.
Watch out for BTC prices falling further. That would create panic-selling for MSTR stock.
Disney (DIS) shares dropped by 7.20% on Monday after posting first-quarter results.
Although adjusted earnings per share will grow in the double-digit percentage, the Experiences segment will experience only modest growth. Domestic parks and higher costs in the cruise line and Disneyland Paris will hurt results.
Robinhood (HOOD) dropped by nearly 10%, extending its downtrend ever since shares peaked at over $150 last quarter. Bitcoin’s decline hurts the trading firm’s addressable market. Cryptocurrency transaction volumes might fall, hurting earnings. HOOD stock already trades at a premium, with a forward P/E of 49 times.
Watch Palantir (PLTR) shares today. The firm posted an EPS of $0.25 on revenue of $1.41 billion. Both figures beat expectations. Revenue grew by 70%, driven by an increase in government and commercial contracts.
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