Microstrategy Incorporated Stock Intrinsic Value – MicroStrategy’s Shares Drop 10% Amidst Bitcoin Drama
May 9, 2023
Trending News 🌥️
MICROSTRATEGY ($NASDAQ:MSTR): This unexpected drop has many investors wondering what caused the sudden stock dip. Reports suggest that the decline in stock may be related to news regarding the company’s investments in Bitcoin. While the company’s initial investment in the cryptocurrency has returned gains, the company’s recent decision to expand its holdings may have caused investors to worry about their potential risk.
Investors have been rattled by this news and many have decided to sell their shares in MicroStrategy, thus causing the company’s stock to drop nearly 10%. Despite this, some investors are taking a more optimistic view of the situation, believing that the sudden decline in stock is only a temporary setback and that the company’s Bitcoin investments may eventually pay off.
Analysis – Microstrategy Incorporated Stock Intrinsic Value
At GoodWhale, we have conducted an in-depth analysis of MICROSTRATEGY INCORPORATED’s intrinsic value and overall wellbeing. Our proprietary Valuation Line revealed that the company’s intrinsic value is around $308.2, however the current trading price of the stock is $294.7. This means that MICROSTRATEGY INCORPORATED shares are currently undervalued by 4.4%. This gives investors a good opportunity to buy the stock at a lower price and benefit from its intrinsic value as the stock increases in price. We believe that MICROSTRATEGY INCORPORATED is a good long-term investment and would recommend investors to get in now at a discounted price. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Microstrategy Incorporated. More…
| Total Revenues | Net Income | Net Margin |
| 501.9 | -877.85 | -7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Microstrategy Incorporated. More…
| Operations | Investing | Financing |
| -3.07 | -242.22 | 245.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Microstrategy Incorporated. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.03k | 2.58k | 34.25 |
Key Ratios Snapshot
Some of the financial key ratios for Microstrategy Incorporated are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.3% | -1.1% | 40.1% |
| FCF Margin | ROE | ROA |
| -51.2% | 418.6% | 4.2% |
Peers
The company’s main competitors are Coinbase Global Inc, Riot Blockchain Inc, Bakkt Holdings Inc.
– Coinbase Global Inc ($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 is a business intelligence company that provides analytics, mobile, and security software solutions. Its shares experienced a sharp decline of almost 10% on Monday, which could be attributed to some bitcoin drama. Investors are likely to take a more cautious approach when analyzing this stock’s performance in the near future. Analysts suggest that investors should focus on the company’s fundamentals and long-term earning potential. It is important to consider the management team’s ability to execute strategies and take advantage of opportunities while mitigating risks.
Additionally, investors must consider the company’s competitive landscape and industry trends. Lastly, it is important to consider the effect of macroeconomic factors on the stock’s performance. Overall, only time will tell if MicroStrategy Incorporated will be a winning investment.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
