We recently compiled a list of the 10 Firms Suffer Steep Downfall on Monday. In this article, we are going to take a look at where MicroStrategy Incorporated (NASDAQ:MSTR) stands against the other stocks.

Ten companies kicked off Monday’s trading in a bloodbath, mirroring the broader market pessimism, with valuations slashed by double digits mostly due to investor caution brought about by key economic uncertainties.

Wall Street’s main indices all fell in the red, with the tech-heavy Nasdaq recording the steepest downfall with 4 percent.

The S&P 500 declined by 2.7 percent, while the Dow Jones dropped by 2.08 percent.

We have identified the 10 worst-performing companies on Monday and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion in market capitalization and $5 million in trading volume.

A software engineer wearing a headset, collaborating with a remote team on a project.

MicroStrategy Incorporated (NASDAQ:MSTR)

Shares of MicroStrategy Incorporated (NASDAQ:MSTR), doing business as Strategy, nosedived by 16.68 percent on Monday, a third straight day, to finish at $239.27 each as investors sold off positions amid economic uncertainties that continue to dampen buying appetite.

MicroStrategy Incorporated (NASDAQ:MSTR) declined alongside its fellow counterparts, tracking the drop in Bitcoin prices, which, as of this writing, was already at the $79,000 level.

On Monday, MicroStrategy Incorporated (NASDAQ:MSTR) also announced that it would issue and sell shares of its 8-percent series A perpetual strike preferred stock, with a par value of $0.001 per share, for an aggregate amount of $21 billion.

According to the company, it intends to use the net proceeds for general corporate purposes, including the acquisition of Bitcoin and working capital.

MicroStrategy Incorporated (NASDAQ:MSTR) is currently one of the largest Bitcoin owners, hoarding as much as 500,000 Bitcoins to date.

Over the past few weeks, MSTR has been riding the wave of volatility in the cryptocurrency industry, having earned Trump’s backing. However, traders hungry for more developments found the lack of more concrete plans disappointing.

Overall MSTR ranks 4th on our list of Monday's worst performing stocks. While we acknowledge the potential of MSTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSTR but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.