Strategy (NASDAQ: MSTR) shares fell 5% on October 22 as an AI-stock selloff, weaker Bitcoin and rising oil prices pressured risk assets. The company reports Q3 2026 earnings on October 29, and analysts expect a year-over-year increase.
Strategy's stock dropped 5% on October 22 to close at $145 as bearish macro factors kept pressure on risk assets. Analysts are now weighing in on the decline ahead of the company's Q3 2026 earnings report.
AI selloff and Bitcoin weigh on MSTR
The main driver is fear around the selloff in AI stocks, which triggered a 1.2% decline in the S&P 500, the worst drop since July. The Nasdaq index also fell 2.6%, its worst performance since June.
Bitcoin's decline adds to the pressure. Analyst Daan Crypto warns that BTC could extend the decline towards the $72K to $75K region if it loses support at $80,000.
That outlook matters for Strategy because the company holds 848,517 BTC after its recent 267 BTC purchase and is only 7.70% above its cost basis. Rising oil prices also weigh on the stock, with analyst Martini Guy noting that higher energy prices could increase inflation and pressure the Fed to raise interest rates, which would reduce demand for risk assets.
Key levels to watch for MSTR
On the chart, the crucial support level is $139, and losing it could trigger a downtrend towards $125. However, pre-market gains suggest Thursday's crash created an opportunity for dip-buying, and more buying pressure could push the shares towards resistance at the 50-day EMA of $160.
The RSI reading was 52 at the time of writing, which suggests bulls have a slight upper hand. A drop below $130 could suggest the downtrend is gaining strength.
Earnings on October 29 in focus
Strategy reports Q3 2026 results next week, and the options market suggests the shares might move by 3.4% after the results. Earnings per share are expected to come in at $21.50, a 155.3% year-over-year increase. Revenue is expected to rise 1.3% year-over-year to $130.4 million.
Polymarket data shows a 97% chance that Strategy will surpass Wall Street estimates in Q3 2026.
Source: CoinGape
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