Business intelligence software company MicroStrategy is up to release its earning reports for Q3 2022. As reported, the earnings will be released by 1st November 2022. MicroStrategy (MSTR) stock is already in good position from its prior levels and likely to enjoy more growth following the earnings release.
MicroStrategy (MSTR) stock price is trading at 270.56 USD which is more than 22% up from its price a month ago. The stock price has done well in the monthly time frame but it’s not the same for earlier. MSTR stock is down by 32% from the last six months. Moreover, the stock price has seen a 50% drop in year-to-date and 62% drop in the year-to-year window.
Company’s policies and strategies have played a significant role in maintaining the price apart from sensitive market conditions due to macroeconomic circumstances lately. Broadly MicroStrategy has two strategies: acquire and hold the top cryptocurrency bitcoin (BTC) and to grow their main enterprise analytics software business.
Crypto Works Like a Charm for MicroStrategy
Notably the cryptocurrency focusing strategy seems to work well for the company. For instance, in September MicroStrategy announced to buy crypto assets worth 500 million USD. Although the amount said to raise after selling of shares and gathering from investors, stock prices reacted positively towards the news. Since the announcement, the stock price has seen a jump of more than 20%.
Meanwhile analysts are optimistic for the upcoming earnings release of MicroStrategy and impact on its stock price. Although the last earning release of Q2 2022 did not perform as per the expectations. Analysts predicted EPS to stay around 2.20 USD but it turned out -92.81 USD. Not just this, several other factors also underperformed in comparison to Q2 2021.
Earnings release of MicroStrategy during Q2 2022 reported the losses of 918.1 million USD, which is a lot more than losses of 412.2 million USD in Q2 last year. While the profits also witnessed a drop from 102.3 million USD last year to 96.9 million USD for this year.
Bitcoin holding also acts as a crucial performance factor for MicroStrategy which was about 129,699 BTC by June 30th 2022.
MicroStrategy Stock Receiving Optimist Reviews
Citing different factors, analysts made predictions for stock price in near future along with stock ratings. Tipranks put MicroStrategy stock rated “moderate buy” overall given three analysts put the stock in “buy” with one in “sell”. The target price was set to reach up to 500.67 USD. MarketBeat rated the stock to “hold” since one analyst put it in “buy” and other in “sell”.
Wallet Investor said MSTR stock was “very good for the long term” and stock price was said to go up to 325.33 USD in a year while 719.26 USD for the upcoming five years.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/10/28/analysts-hopes-microstrategy-mstr-stock-to-perform-well/