MicroStrategy's stock experienced a significant uplift, climbing as much as 8% to reach $274.52. This positive movement is attributed to the company's strong financial performance, including a remarkable turnaround in earnings, coupled with growing anticipation of its potential inclusion in the S&P 500 index. This development is not only a testament to MicroStrategy's improved financial health but also signals a broader recognition of its strategic positioning in the market, particularly concerning its engagement with Bitcoin and expansion into global credit markets. The confluence of these factors has generated considerable optimism among investors, setting the stage for potential further growth and a reevaluation of the company's market valuation.
On Friday, MicroStrategy's (MSTR) stock saw a notable increase, with shares rising up to 8% and hitting $274.52. This surge was primarily driven by the company's impressive third-quarter earnings report, which showcased a significant financial recovery. The company declared an operating income of $3.9 billion and a net income of $2.9 billion, marking a substantial reversal from the losses incurred in the previous year. For the initial nine months of 2025, MicroStrategy reported an operating income of $12 billion and a net income of $8.6 billion, with earnings per share climbing to $27.71 from a loss of $2.71 during the same period a year prior.
Phong Le, the Chief Executive Officer, revealed during the recent earnings call that MicroStrategy is actively preparing to introduce credit securities in international markets, indicating a strategic push towards global expansion. A key highlight for investors is the company's qualification for potential entry into the S&P 500 index for the second consecutive quarter. This milestone is crucial as it could attract substantial institutional investment, further boosting the stock's performance.
The stock's rebound from its multi-month support level near $260, which has consistently held strong since late 2024, is another positive indicator. This recovery followed a brief dip below the 0.236 Fibonacci retracement level of $305, suggesting that the stock was oversold and subsequently drew renewed buying interest. This pattern reinforces the long-term ascending triangle formation observed since early 2024, where the lower boundary has been robustly defended by bulls.
Executive Chairman Michael Saylor outlined the company's strategic vision, which includes eliminating all convertible debt by 2029 and expanding its international offerings of Bitcoin-backed credit instruments. Saylor noted that MicroStrategy's multiple to net asset value (mNAV) is currently around 1.25, its lowest point since early 2024, suggesting that the stock may be undervalued relative to its substantial holdings. He attributed this valuation compression to the increasing maturity of the Bitcoin market, the success of BlackRock's IBIT, and the stabilizing impact of derivative markets. However, Saylor anticipates an improvement in mNAV as the company's digital credit offerings expand.
From a technical standpoint, the outlook for MSTR remains cautiously optimistic. The stock is currently trading below its key Exponential Moving Averages (EMAs), which serve as a near-term resistance. A sustained close above $318 could signal a breakout towards $350. Conversely, a failure to maintain the $260 support level could lead to a pullback towards $230, which represents the year's primary accumulation base. The Relative Strength Index (RSI) has shown improvement, rising to 40.5 from oversold levels near 35, and the narrowing Moving Average Convergence Divergence (MACD) histogram indicates a reduction in selling pressure and potential early signs of a trend reversal.