A negative analyst note caused Strategy (NASDAQ: MSTR) stock to drop almost 2% on Thursday, closing at $337.58. Analyst Gus Galá reiterated a sell recommendation with a $175 price target, citing concerns about the stock’s premium valuation and convertible bonds used to buy Bitcoin. The company’s heavy Bitcoin exposure leaves it vulnerable to asset volatility.

Investors should be cautious before investing in Strategy as it faces risks related to its Bitcoin holdings. The Motley Fool Stock Advisor team did not include Strategy in their list of top 10 stocks to buy now. Past recommendations from Stock Advisor have seen significant returns, outperforming the S&P 500 by a wide margin. It’s important to weigh the risks before making any investment decisions.

Read more at Nasdaq: Why Strategy Stock Tumbled on Thursday