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Markets down on ThursdayThis summary was created by AI, based on 5 opinions in the last 12 months.
MicroStrategy (MSTR-Q) is a company heavily leveraged on Bitcoin prices, with a significant holding of 252,000 Bitcoin. The stock has been extremely volatile, with some experts recommending only a portion of the portfolio to be invested in the company. The social media mentions have seen a significant increase, indicating a growing interest in the company, while others still prefer owning Bitcoin directly. Overall, the future of the company seems uncertain due to its heavy reliance on the cryptocurrency market.
Trades off Bitcoin. Very volatile. Hard to determine outcome of business. Would rather owning Bitcoin itself.
MSTR is a $3.8B company that provides analytics software services, and has mostly maintained its revenue levels over the years. It has been decently profitable over the years, and exhibited decent share price appreciation from post-dot com to ~2020. During 2020, the CEO implemented a 'bitcoin strategy' whereby the company would direct some of its free cash flows and debt issuance towards the purchase of bitcoin. The company's purchases were profitable for some time, and represented a large percentage of its market cap, causing the share price to largely reflect bitcoin's price. The company continues to purchase bitcoin with its free cash flow, however, this has materially slowed down.
It has 140K bitcoins, worth roughly ~$3.7B. Given this, its market cap is mostly its holdings in bitcoin, and on the optimistic side, if the price of bitcoin increases and its business becomes profitable again (therefore allowing it to purchase more bitcoin) its share price can increase from here. On the other hand, if bitcoin declines or stagnates, it has a high debt load that will require interest payments and its share price will fall. Much depends on the price of bitcoin for MSTR, and we believe if an investor is bullish on the price of bitcoin, we feel MSTR has upside potential, however, if one is less optimistic then it may not show much capital appreciation over the coming years.
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MicroStrategy is a American stock, trading under the symbol MSTR-Q on the NASDAQ (MSTR). It is usually referred to as NASDAQ:MSTR or MSTR-Q
In the last year, 3 stock analysts published opinions about MSTR-Q. 1 analyst recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for MicroStrategy.
MicroStrategy was recommended as a Top Pick by on . Read the latest stock experts ratings for MicroStrategy.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered MicroStrategy In the last year. It is a trending stock that is worth watching.
On 2025-01-14, MicroStrategy (MSTR-Q) stock closed at a price of $342.17.
Leveraged vehicle on Bitcoin prices. Would not recommend going all in. Would suggest a portion of portfolio on company. Given current price of Bitcoin (all time high) - would suggest selling.