MSTR, XYZ Stocks Fall – Bitcoin, Stock Market Sell-Off Overshadow Barclays Boost

Barclays assigned a $130 price target to Strategy and a $100 target to Block, both representing a potential upside of 30 from Monday’s close.

• Shares of MSTR and XYZ fell in morning trading despite Barclays initiating coverage with 'Overweight' ratings.
• While both targets imply upside from current levels, Barclays' price target for Strategy was well below the broader Wall Street consensus.
• On Stocktwits, some retail traders expect Strategy shares to decline further, while others remain optimistic about Bitcoin's long-term outlook tied to the CLARITY Act.

Shares of Michael Saylor-backed Strategy (MSTR) and Jack Dorsey-led Block (XYZ) dropped in morning trade on Wednesday amid the broader sell-off in stocks despite getting an ‘Overweight’ rating from Barclays.

The firm gave MSTR stock a price target of $130 and XYZ stock a price target of $100, as per a note to investors cited by TheFly. It said the broader sector reset was aimed at identifying “durable franchises” positioned for long-term growth as Barclays initiated coverage of the U.S. payments and fintech industry.

While both price targets represent an upside of around 30% for both stocks, the $130 price target on MSTR is grossly below the analyst average of over $303, as per Koyfin data. The $100 price target on XYZ sits only 8% higher than the average target of $91.91.