MicroStrategy's stock (NASDAQ: MSTR) trade on the Nasdaq under the ticker symbol MSTR, and has grown enormously over the past 5 years.
MicroStrategy Incorporated is an enterprise analytics and mobility software and services company founded in 1989. Today, MicroStrategy is a player in the business intelligence field and is also considered a proxy for Bitcoin.
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MicroStrategy EPS and Revenue Breakdown 2020-2023
| MicroStrategy | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | $-0.78 | $480.74 million |
| 2021 | $-53.44 | $510.76 million |
| 2022 | $-129.23 | $499.26 million |
| 2023 | $26.42 | $496.26 million |
While MicroStrategy is a business intelligence company, it has also become more prominent in another market. Michael Saylor has served as the CEO since he founded the company and is a vocal advocate for Bitcoin, overseeing the company's aggressive strategy of acquiring and holding Bitcoin on its corporate balance sheet.
According to reports, MSTR now owns more than 1% of all the Bitcoin in the world.
IT Software Industry Comparison
MicroStrategy offers various business intelligence solutions to its customers in the retail, banking, technology, consulting, manufacturing, insurance, healthcare, and telecommunications sectors. The company's core product is the MicroStrategy Platform, which provides a comprehensive suite of tools for data analytics, visualization, and mobile access. Additionally, MicroStrategy offers cloud-based subscriptions and related services to complement its core software product.
MicroStrategy Share Price & Chart
MSTR shares have made strong gains recently, primarily thanks to the rise of Bitcoin. With the stock being seen as a proxy for the primary cryptocurrency, expect its share price movement to be heavily dictated by what's happening in the cryptocurrency market.
P/E Ratio Average Over the Last Ten Years: 112.75 (Source: FullRatio)
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MicroStrategy Stock Forecast
According to data compiled by TradingView, out of five analysts covering MicroStrategy, four have a Buy or Strong Buy rating on the stock, while one has assigned it a Sell rating. The average price target is $1,509.60.
In April, Benchmark raised MicroStrategy's price target to $1,875 from $990, maintaining its Buy rating on the shares. Benchmark said MicroStrategy was “particularly well positioned to benefit” from the fourth Bitcoin halving.
Also in April, BTIG increased its price target on MicroStrategy to $1,800 from $780, keeping a Buy rating on the stock. The investment firm highlighted MSTR's strong rally in the year-to-date in its note, stating it was driven by the price of Bitcoin rallying. This, of course, benefits MicroStrategy's strategy. They also noted the capital raises from MSTR, which has increased the number of Bitcoin per share for equity holders. Bitcoin catalysts, such as the halving event, are expected to help MicroStrategy during 2024.
Our View: The MSTR strategy of acquiring and holding Bitcoin makes it a proxy for the leading cryptocurrency, and while that means it could see price surges, there is also the risk of significant downturns and volatility. Any potential investors should first be aware of the significant risks before deciding to invest in the company.
Who Might Buy MicroStrategy Shares
MicroStrategy's primary focus has shifted towards acquiring and holding Bitcoin. If you are bullish on Bitcoin and share Michael Saylor's positive outlook on the leading cryptocurrency and believe its value will rise significantly over time, then MSTR could be a good fit. However, this strategy exposes you directly to Bitcoin's price volatility.
MicroStrategy's heavy reliance on Bitcoin makes it a riskier investment than traditional business intelligence companies. As a result, you should have a high risk tolerance. The stock price can fluctuate significantly based on Bitcoin's price movements. Carefully evaluate your risk tolerance before investing.
While MicroStrategy's Bitcoin strategy offers potential for high growth if Bitcoin's value soars, the company's core business intelligence software sales are not the main driver of its stock price currently. Investors seeking a more stable, established business with predictable earnings might look elsewhere.
MicroStrategy does not currently pay a dividend, so it won't provide a steady income stream. Investors seeking dividend income might be better suited for traditional stocks.
