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Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

Microstrategy (MSTR-Q) is a leading provider of powerful software solutions and specialized services that aim to make every business smarter. The company has made significant investments in Bitcoin, owning 252,000 Bitcoin and experiencing a 419% increase in shares this year. However, experts have differing opinions on the company's reliance on Bitcoin, with some expressing concerns about its volatility and preferring to own Bitcoin directly. Despite this, Microstrategy remains a pioneer in enterprise analytics and mobility software, with a strong focus on empowering businesses to make better decisions and transform their operations. Social media mentions have seen a significant increase, showcasing growing interest in the company.

Consensus
Mixed
Valuation
Overvalued
RISKY
MicroStrategy

It owns 252,000 Bitcoin, shares up 419% this year. A crypto play.

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DON'T BUY
MicroStrategy

Trades off Bitcoin. Very volatile. Hard to determine outcome of business. Would rather owning Bitcoin itself. 

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TOP PICK
MicroStrategy

Microstrategy (nasdaq: mstr) is a worldwide leader in enterprise analytics and mobility software. a pioneer in the bi and analytics space, microstrategy delivers innovative software that empowers people to make better decisions and transform the way they do business. we provide our enterprise customers with world-class software and expert services so they can deploy unique intelligence applications. Social media mentions are up 1000% in the past 24h.

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HOLD
MicroStrategy
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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0
DON'T BUY
MicroStrategy
As they add Bitcoin to their balance sheet and increases the amount of Bitcoin per share Buy Bitcoin instead. You don't know what the CEO will do.
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HOLD
MicroStrategy
He wanted to have some exposure to bitcoin, because he has some concerns about the rapid expansion of central bank balance sheets leading to currency debasement. This company bought bitcoin with their balance sheet. Now they are issuing debentures and buying bitcoin with it. He has been trimming on the way up. The stock got way ahead of itself. He is playing entirely with house money and has his original investment out. He owns it to have a little exposure to bitcoin.
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HOLD
MicroStrategy
And would you buy Bitcoin? Speculative. The CEO have invested in Bitcoin until Bitcoin now makes up 50% of the company's market cap. MSTR is like an ETF of Bitcoin. He has pared his holdings as Bitcoin has risen. Interesting: MSTR tracks the price of Bitcoin when it rises, but goes down less when Bitcoin's price decreases. Caveat: Is this company double or triple what it was worth in October (the stock price has soared since October in tandem with Bitcoin). There's a disconnect in valuation, though he may add on weakness. He's waiting for their next report. No, he doesn't own Bitcoin directly, but he owns MSTR instead.
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TOP PICK
MicroStrategy
Bitcoin is volatile, but what it has is a fixed supply. Cash is generating a negative real rate of return, like a melting ice cube. This company bought bitcoin, and is a sneaky way to get exposure. Be aware that the risk has increased, price is going parabolic, so you may want to wait for a pullback. He stepped in with a 2% position. No dividend. (Analysts’ price target is $250.00)
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MicroStrategy(MSTR-Q) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 2

Stockchase rating for MicroStrategy is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

MicroStrategy(MSTR-Q) Frequently Asked Questions

What is MicroStrategy stock symbol?

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

Is MicroStrategy a buy or a sell?

In the last year, 2 stock analysts published opinions about MSTR-Q. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for MicroStrategy.

Is MicroStrategy a good investment or a top pick?

MicroStrategy was recommended as a Top Pick by on . Read the latest stock experts ratings for MicroStrategy.

Why is MicroStrategy stock dropping?

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.

Is MicroStrategy worth watching?

2 stock analysts on Stockchase covered MicroStrategy In the last year. It is a trending stock that is worth watching.

What is MicroStrategy stock price?

On 2024-12-10, MicroStrategy (MSTR-Q) stock closed at a price of $377.32.