Summary

• MicroStrategy's shares have decreased significantly since joining the Nasdaq-100, falling approximately 45% from peak prices.
• Despite this decline, the stock still performs admirably compared to previous years.
• George Soros' concept of Reflexivity is relevant in understanding current market behavior.

Recent Events

In hindsight, it seemed unavoidable. After a drop of more than 8% on Monday, MicroStrategy (MSTR) shares are hovering just above $300, marking a nearly 50% decline from their late November high.

The dramatic rise and subsequent fall in MicroStrategy's stock have raised significant questions regarding market behaviors and investor perceptions, consistent with Soros' theories. Michael Saylor’s remarkable promotion of the company's strategic goals and Bitcoin investments have played a crucial role in this narrative.

Key Takeaways

• A decline in MicroStrategy stock prices follows a significant announcement regarding its Nasdaq-100 inclusion, with shares now at $300 after reaching nearly $543 in late November.
• Despite the setbacks, the stock remains up over 400% year-to-date, illustrating a remarkable journey since starting Bitcoin acquisitions in August 2020.

“If something cannot go on forever, it will stop.” - Herb Stein, economist

Thus, while some skeptics project deeper declines, proponents of the stock maintain that similar fluctuations have previously resolved positively.