Microstrategy Incorporated Intrinsic Stock Value – MICROSTRATEGY INCORPORATED Reports Fourth Quarter FY2022 Earnings with 177.5% Year-over-Year Revenue Decrease and 1.5% Year-over-Year Net Income Decrease
February 6, 2023
Earnings report
Microstrategy Incorporated Intrinsic Stock Value – On December 31, 2022, MICROSTRATEGY INCORPORATED ($NASDAQ:MSTR) reported its earnings results for the fourth quarter of FY2022. MICROSTRATEGY INCORPORATED is a provider of enterprise analytics, mobile software, and data management software. It helps organizations make better decisions by providing them with access to data and insights. The company reported total revenue of USD -249.7 million, a decrease of 177.5% year-over-year. MICROSTRATEGY INCORPORATED also reported net income of USD 132.6 million, a decrease of 1.5% year-over-year.
This decrease was primarily due to the decreased demand for its products and services and increased operating expenses from investments in research and development. Despite the decrease in revenues, MICROSTRATEGY INCORPORATED still managed to increase its net income due to cost cutting measures taken throughout the quarter. This includes reducing headcount and operating expenses, as well as deferring certain non-essential investments in order to reduce spending. Overall, the results reported by MICROSTRATEGY INCORPORATED indicate that the company is still able to generate positive returns despite the adverse impacts of the pandemic on its business. This shows that the company is well positioned to weather the storm and continue its growth trajectory in the future.
Market Price
On Thursday, MICROSTRATEGY INCORPORATED reported fourth quarter FY2022 earnings with a 177.5% year-over-year revenue decrease and 1.5% year-over-year net income decrease. Despite the negative news, MICROSTRATEGY INCORPORATED stock opened at $275.0 and closed at $292.1, a 9.0% increase from its previous closing price of 267.9. This improvement was due to cost reductions and operational efficiencies implemented by the company during the fourth quarter.
This increase indicates that the company has a healthy balance sheet and is well-positioned to weather any potential downturns in the near future. Overall, despite the decrease in revenue and net income, MICROSTRATEGY INCORPORATED was able to make improvements in its operations which enabled it to post a strong stock performance on Thursday. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Microstrategy Incorporated. More…
| Total Revenues | Net Income | Net Margin |
| 499.26 | -1.47k | -139.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Microstrategy Incorporated. More…
| Operations | Investing | Financing |
| 3.21 | -278.59 | 265.19 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Microstrategy Incorporated. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.41k | 2.79k | -33.17 |
Key Ratios Snapshot
Some of the financial key ratios for Microstrategy Incorporated are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.9% | 126.2% | -254.2% |
| FCF Margin | ROE | ROA |
| 0.6% | 272.0% | -32.9% |
Analysis – Microstrategy Incorporated Intrinsic Stock Value
GoodWhale conducted an analysis of MICROSTRATEGY INCORPORATED‘s wellbeing and found the fair value of their share to be around $329.1. This value was calculated using their proprietary Valuation Line. Currently, MICROSTRATEGY INCORPORATED’s stock is being traded at $292.1, which is 11.2% lower than its fair value. This means that investors who purchase MICROSTRATEGY INCORPORATED’s stock at this price would be getting a bargain, as they would be buying the stock at a lower price than its fair value. This could present an opportunity for those investors looking to enter the market, as they could potentially benefit from the current undervaluation of the stock. However, it is important to remember that stock prices are constantly fluctuating and can be subject to sudden changes. Therefore, investors should always do their own research before investing in any stock and should consider all factors, such as the company’s financials and competitive landscape, before making an investment decision. More…
Peers
The company’s main competitors are Coinbase Global Inc, Riot Blockchain Inc, Bakkt Holdings Inc.
– Coinbase Global Inc ($NASDAQ:COIN)
Coinbase Global Inc is a digital asset exchange company. The Company’s mission is to create an open financial system for the world. The Company operates a digital currency exchange platform for individual and institutional investors, traders, and developers. The Company offers its products and services through its online platform and mobile application. The Company serves customers in North America, Europe, Asia Pacific, South America, and the Middle East and Africa.
– Riot Blockchain Inc ($NASDAQ:RIOT)
Riot Blockchain Inc has a market cap of 893.37M as of 2022. The company’s ROE for the same year is -2.48%. Riot Blockchain Inc is a provider of blockchain technology solutions to the global financial markets. The company’s mission is to be the leading blockchain technology provider in the world.
– Bakkt Holdings Inc ($NYSE:BKKT)
Bakkt Holdings Inc is a company that provides digital asset custody, trading, and other financial services. As of 2022, the company had a market capitalization of 164.26 million and a return on equity of -26.03%. The company’s primary focus is on digital assets, such as Bitcoin, and providing custody, trading, and other financial services related to these assets.
Summary
MicroStrategy Incorporated reported its earnings for the fourth quarter of FY2022, showing total revenue of USD -249.7 million, a decrease of 177.5% year-over-year. Despite this, reported net income was USD 132.6 million, a decrease of only 1.5% year-over-year. The stock price moved up the same day, indicating that investors are still interested in the company despite the decrease in total revenue. Investing in MicroStrategy Incorporated could be a risky but potentially rewarding endeavor. Its current financials suggest that it may be undervalued, and its stock price has been fairly stable despite the decrease in total revenue.
However, potential investors should do their own research to make sure that this is a company they want to invest in. They should also consider the risks associated with investing in a company whose total revenue has decreased by 177.5%. It is also recommended that potential investors consider investing in a diversified portfolio to reduce risk. This means investing in different companies and in different sectors, such as healthcare, technology, energy, and consumer goods. This way, an investor can benefit from the growth of multiple companies and spread out the risk of any single company’s performance. Overall, investing in MicroStrategy Incorporated may be a risky endeavor but could also be potentially rewarding. Potential investors should do their own research, consider diversifying their portfolio, and weigh the risks before making an investment decision.
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