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Microstrategy Inc. (NASDAQ: MSTR) Gains 646.32% In Early Trade; What Lies Ahead?

Microstrategy Inc. (NASDAQ:MSTR) price closed higher on Friday, February 09, jumping 646.32% above its previous close.

A look at the daily price movement shows that the last close reads $585.80. The company’s 5Y monthly beta was ticking 2.62 while its P/E ratio in the trailing 12-month period read 22.94. Taking into account the 52-week price action we note that the stock hit a 52-week high of $727.77 and 52-week low of $188.30. The stock added 14.26% on its value in the past month.

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Microstrategy Inc., which has a market valuation of $10.90 billion, is expected to release its quarterly earnings report Apr 29, 2024 – May 03, 2024. Analysts tracking MSTR have forecast the quarterly EPS to grow by 0.25 per share this quarter, while the same analysts predict the annual EPS to hit $1.44 for the year 2024 and up to $1.85 for 2025. In this case, analysts estimate an annual EPS growth of -94.80% for the year and 28.50% for the next year.

On average, analysts have forecast the company’s revenue for the quarter will hit $120.87 million, with the likely lows of $116.4 million and highs of $124.2 million. The average estimate suggests sales growth for the quarter will likely rise by 1.50% when compared to those recorded in the same quarter in the last financial year. Staying with the analyst view, there is a consensus estimate of $504.23 million for the company’s annual revenue in 2024. Per this projection, the revenue is forecast to grow 1.60% above that which the company brought in 2024.

Revisions to the company’s EPS highlights a short term direction of a stock’s price movement, which in the last 7 days came up with no upward and no downward reviews. On the technical perspective front, indicators give MSTR a short term outlook of 50% Buy on average. Looking at the stock’s medium term indicators we note that it is averaging as a 100% Buy, while an average of long term indicators are currently assigning the stock as 100% Buy.

If we dive deeper into the stock’s performance we see the positive picture represented by the PEG ratio, currently standing at 2.29. The overview shows that MSTR’s price is at present 875.00% off the SMA20 and -6.09% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 69.97, with weekly volatility standing at 6.85%. The indicator jumps to 6.36% when calculated based on the past 30 days. Microstrategy Inc. (NASDAQ:MSTR)’s beta value is holding at 2.62, while the average true range (ATR) indicator is currently reading 36.29.

Turning out attention to how the Microstrategy Inc. stock has performed in comparison to its peers in the industry, here’s what we find: MSTR’s stock is 646.32% on the day and 134.21% in the past 12 months, while Teradata Corp. (TDC) traded 0.66%% in the last session and was positioned 23.77% up on its price 12 months ago. Turning out attention to how the Microstrategy Inc. stock has performed in comparison to its peers in the industry, here’s what we find: MSTR’s stock is 646.32% on the day and 134.21% in the past 12 months, while Teradata Corp. (TDC) traded 0.66%% in the last session and was positioned 23.77% up on its price 12 months ago. Another comparison is with Splunk Inc. (SPLK) whose stock price was up 0.19%% in the last trading session, and has flourished 44.61% over the past year. Also, International Business Machines Corp. (IBM) showed up trend of 1.07%% while its price kept floating at 35.67% over the past year. As for Microstrategy Inc., the P/E ratio stands at 22.94 lower than that of Teradata Corp.’s at 81.75 and Splunk Inc.’s 348.22.

An analysis of the Microstrategy Inc. (NASDAQ:MSTR) stock in terms of its daily trading volume indicates that the 3-month average is 2.00. However, this figure increases on the past 10-day timeline to an average of 1.17 million.

Current records show that the company has 14.90M in outstanding shares. The insiders’ percentage holdings are 11.72% of outstanding shares while the percentage share held by institutions stands at 43.11%. The stats also highlight that short interest as of Jan 31, 2024, stood at 3.04 million shares, which puts the short ratio at the time at 2.07. From this we can glean that short interest is 18.02% of company’s current outstanding shares. Notably, we see that shares short in January rose slightly given the previous month’s figure stood at 2.88 million. But the 2.33% upside, the stock’s price has registered year-to-date as of last trading, will likely reignite investor interest given the prospect of it rallying even higher.