Is MicroStrategy Incorporated Stock a Good Investment?
MicroStrategy Incorporated Investment Advice | MSTR |
- Examine MicroStrategy Incorporated's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research MicroStrategy Incorporated's leadership team and their track record. Good management can help MicroStrategy Incorporated navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact MicroStrategy Incorporated's business and its evolving consumer preferences.
- Compare MicroStrategy Incorporated's performance and market position to its competitors. Analyze how MicroStrategy Incorporated is positioned in terms of product offerings, innovation, and market share.
- Check if MicroStrategy Incorporated pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about MicroStrategy Incorporated's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in MicroStrategy Incorporated stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if MicroStrategy Incorporated is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine MicroStrategy Incorporated Stock
Researching MicroStrategy Incorporated's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 47.0% of the company shares are owned by institutional investors. The book value of MicroStrategy Incorporated was now reported as 74.17. The company recorded a loss per share of 6.06. MicroStrategy Incorporated had not issued any dividends in recent years. The entity had 10:1 split on the 8th of August 2024.
To determine if MicroStrategy Incorporated is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding MicroStrategy Incorporated's research are outlined below:
| MicroStrategy Incorporated generated a negative expected return over the last 90 days | |
| MicroStrategy Incorporated has high historical volatility and very poor performance | |
| MicroStrategy Incorporated currently holds 109.9 M in liabilities with Debt to Equity (D/E) ratio of 2.82, implying the company greatly relies on financing operations through barrowing. MicroStrategy Incorporated has a current ratio of 0.76, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about MicroStrategy Incorporated's use of debt, we should always consider it together with its cash and equity. | |
| The entity reported the previous year's revenue of 463.46 M. Net Loss for the year was (1.17 B) with profit before overhead, payroll, taxes, and interest of 333.99 M. | |
| MicroStrategy Incorporated currently holds about 60.39 M in cash with (53.03 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.34. | |
| Latest headline from finance.yahoo.com: Strategy Buys Almost 2 Billion More Bitcoin, Stash Nears 500,000 Bitcoin |
MicroStrategy Incorporated uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in MicroStrategy Incorporated. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to MicroStrategy Incorporated's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 6th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact MicroStrategy Incorporated's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises MicroStrategy Incorporated's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2012-05-02 | 2012-03-31 | 0.04 | 0.02 | -0.02 | 50 | ||
2002-10-24 | 2002-09-30 | 0.1 | 0.08 | -0.02 | 20 | ||
2020-07-28 | 2020-06-30 | 0.4 | 0.35 | -0.05 | 12 | ||
1999-07-21 | 1999-06-30 | 0.35 | 0.4 | 0.05 | 14 | ||
1999-04-21 | 1999-03-31 | 0.2 | 0.25 | 0.05 | 25 | ||
1999-01-21 | 1998-12-31 | 0.3 | 0.35 | 0.05 | 16 | ||
1998-07-29 | 1998-06-30 | 0.1 | 0.15 | 0.05 | 50 | ||
1999-10-18 | 1999-09-30 | 0.39 | 0.45 | 0.06 | 15 |
Know MicroStrategy Incorporated's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as MicroStrategy Incorporated is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading MicroStrategy Incorporated backward and forwards among themselves. MicroStrategy Incorporated's institutional investor refers to the entity that pools money to purchase MicroStrategy Incorporated's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Jpmorgan Chase & Co | 2024-09-30 | 1.3 M | Clear Street Derivatives Llc | 2024-09-30 | 1.3 M | Northern Trust Corp | 2024-12-31 | 1.1 M | Susquehanna International Group, Llp | 2024-12-31 | 1.1 M | Amvescap Plc. | 2024-12-31 | 979.3 K | Ubs Asset Mgmt Americas Inc | 2024-12-31 | 802.5 K | Charles Schwab Investment Management Inc | 2024-12-31 | 761.8 K | Goldman Sachs Group Inc | 2024-12-31 | 744.5 K | Legal & General Group Plc | 2024-12-31 | 729.9 K | Vanguard Group Inc | 2024-12-31 | 16.3 M | Capital Research & Mgmt Co - Division 3 | 2024-12-31 | 12.6 M |
MicroStrategy Incorporated's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 65.2 B.Market Cap |
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MicroStrategy Incorporated's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.60) | (0.57) | |
| Return On Capital Employed | (0.07) | (0.07) | |
| Return On Assets | (0.05) | (0.04) | |
| Return On Equity | (0.06) | (0.07) |
Determining MicroStrategy Incorporated's profitability involves analyzing its financial statements and using various financial metrics to determine if MicroStrategy Incorporated is a good buy. For example, gross profit margin measures MicroStrategy Incorporated's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of MicroStrategy Incorporated's profitability and make more informed investment decisions.
Evaluate MicroStrategy Incorporated's management efficiency
MicroStrategy Incorporated has return on total asset (ROA) of (0.0757) % which means that it has lost $0.0757 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.1144) %, meaning that it created substantial loss on money invested by shareholders. MicroStrategy Incorporated's management efficiency ratios could be used to measure how well MicroStrategy Incorporated manages its routine affairs as well as how well it operates its assets and liabilities. As of 02/25/2025, Return On Tangible Assets is likely to grow to -0.57. In addition to that, Return On Capital Employed is likely to grow to -0.07. At this time, MicroStrategy Incorporated's Total Assets are relatively stable compared to the past year. As of 02/25/2025, Non Current Assets Total is likely to grow to about 26.9 B, while Other Assets are likely to drop 1.09.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 94.68 | 99.41 | |
| Tangible Book Value Per Share | (29.50) | (28.02) | |
| Enterprise Value Over EBITDA | (30.11) | (28.60) | |
| Price Book Value Ratio | 3.06 | 3.21 | |
| Enterprise Value Multiple | (30.11) | (28.60) | |
| Price Fair Value | 3.06 | 3.21 | |
| Enterprise Value | 1.5 B | 994.8 M |
Understanding the operational decisions made by MicroStrategy Incorporated management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Beta 3.259 |
Basic technical analysis of MicroStrategy Stock
As of the 25th of February, MicroStrategy Incorporated secures the Risk Adjusted Performance of (0.04), mean deviation of 4.92, and Standard Deviation of 6.31. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of MicroStrategy Incorporated, as well as the relationship between them. Please verify MicroStrategy Incorporated mean deviation and maximum drawdown to decide if MicroStrategy Incorporated is priced some-what accurately, providing market reflects its recent price of 250.51 per share. Given that MicroStrategy Incorporated has information ratio of (0.07), we recommend you to check MicroStrategy Incorporated's last-minute market performance to make sure the company can sustain itself at a future point.MicroStrategy Incorporated's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific MicroStrategy Incorporated insiders, such as employees or executives, is commonly permitted as long as it does not rely on MicroStrategy Incorporated's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases MicroStrategy Incorporated insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Michael Saylor over six months ago Disposition of 5000 shares by Michael Saylor of MicroStrategy Incorporated at 121.43 subject to Rule 16b-3 | ||
WeiMing Shao over a year ago Exercise or conversion by WeiMing Shao of 1000 shares of MicroStrategy Incorporated subject to Rule 16b-3 | ||
WeiMing Shao over a year ago Exercise or conversion by WeiMing Shao of 500 shares of MicroStrategy Incorporated subject to Rule 16b-3 | ||
WeiMing Shao over a year ago Exercise or conversion by WeiMing Shao of 250 shares of MicroStrategy Incorporated subject to Rule 16b-3 | ||
WeiMing Shao over a year ago Exercise or conversion by WeiMing Shao of 250 shares of MicroStrategy Incorporated subject to Rule 16b-3 |
MicroStrategy Incorporated's Outstanding Corporate Bonds
MicroStrategy Incorporated issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. MicroStrategy Incorporated uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most MicroStrategy bonds can be classified according to their maturity, which is the date when MicroStrategy Incorporated has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| MICROSOFT P 35 Corp BondUS594918AR51 | View | |
| MICROSOFT P 375 Corp BondUS594918AU80 | View | |
| MICROSOFT P 45 Corp BondUS594918AJ36 | View | |
| MICROSOFT P 53 Corp BondUS594918AM64 | View | |
| MICROSOFT P 27 Corp BondUS594918BB90 | View |
Understand MicroStrategy Incorporated's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing MicroStrategy Incorporated's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (0.40) | |||
| Mean Deviation | 4.92 | |||
| Coefficient Of Variation | (1,395) | |||
| Standard Deviation | 6.31 | |||
| Variance | 39.75 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.47) | |||
| Total Risk Alpha | (0.50) | |||
| Treynor Ratio | (0.41) | |||
| Maximum Drawdown | 28.05 | |||
| Value At Risk | (9.93) | |||
| Potential Upside | 11.56 | |||
| Skewness | 0.1653 | |||
| Kurtosis | (0.12) |
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (0.40) | |||
| Mean Deviation | 4.92 | |||
| Coefficient Of Variation | (1,395) | |||
| Standard Deviation | 6.31 | |||
| Variance | 39.75 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.47) | |||
| Total Risk Alpha | (0.50) | |||
| Treynor Ratio | (0.41) | |||
| Maximum Drawdown | 28.05 | |||
| Value At Risk | (9.93) | |||
| Potential Upside | 11.56 | |||
| Skewness | 0.1653 | |||
| Kurtosis | (0.12) |
Consider MicroStrategy Incorporated's intraday indicators
MicroStrategy Incorporated intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of MicroStrategy Incorporated stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 3.1 M | |||
| Daily Balance Of Power | (1.21) | |||
| Rate Of Daily Change | 0.89 | |||
| Day Median Price | 257.0 | |||
| Day Typical Price | 254.83 | |||
| Price Action Indicator | (22.61) | |||
| Period Momentum Indicator | (32.25) | |||
| Relative Strength Index | 45.55 |
MicroStrategy Stock media impact
Far too much social signal, news, headlines, and media speculation about MicroStrategy Incorporated that are available to investors today. That information is available publicly through MicroStrategy media outlets and privately through word of mouth or via MicroStrategy internal channels. However, regardless of the origin, that massive amount of MicroStrategy data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of MicroStrategy Incorporated news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of MicroStrategy Incorporated relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to MicroStrategy Incorporated's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive MicroStrategy Incorporated alpha.
MicroStrategy Incorporated Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards MicroStrategy Incorporated can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
MicroStrategy Incorporated Historical Investor Sentiment
Investor biases related to MicroStrategy Incorporated's public news can be used to forecast risks associated with an investment in MicroStrategy. The trend in average sentiment can be used to explain how an investor holding MicroStrategy can time the market purely based on public headlines and social activities around MicroStrategy Incorporated. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
MicroStrategy Incorporated's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for MicroStrategy Incorporated and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average MicroStrategy Incorporated news discussions. The higher the estimate score, the more favorable the investor's outlook on MicroStrategy Incorporated.
MicroStrategy Incorporated Corporate Management
| Jeanine Montgomery | Senior Officer | Profile | |
| Vasant Paranjpe | Senior Engineer | Profile | |
| Hugh Owen | Ex Officer | Profile | |
| Carla Fitzgerald | Executive Officer | Profile |
Additional Tools for MicroStrategy Stock Analysis
When running MicroStrategy Incorporated's price analysis, check to measure MicroStrategy Incorporated's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy MicroStrategy Incorporated is operating at the current time. Most of MicroStrategy Incorporated's value examination focuses on studying past and present price action to predict the probability of MicroStrategy Incorporated's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move MicroStrategy Incorporated's price. Additionally, you may evaluate how the addition of MicroStrategy Incorporated to your portfolios can decrease your overall portfolio volatility.