What's Going On With MicroStrategy Stock?

MicroStrategy Incorporated MSTR shares are trending Tuesday and the stock is up more than 30% over the past five days. Here's a look at what's going on. 

What To Know:

The company announced the release of MicroStrategy Auto on Tuesday. MicroStrategy describes Auto as a customizable AI bot that offers a faster, simpler way to deliver business intelligence to anyone in an organization and the latest enhancement to MicroStrategy AI, released in October 2023, a solution for rapidly building AI applications on trusted data. 

Last week MicroStrategy announced it acquired 9,245 additional Bitcoins, for approximately $623 million in cash, at an average price of approximately $67,382 per bitcoin. 

As of March 18, the company holds approximately 214,246 bitcoins, acquired at an aggregate purchase price of approximately $7.53 billion and an average purchase price of approximately $35,160 per bitcoin.

At the time of publication, Bitcoin is trading at approximately $69,755.19, according to Benzinga Pro. 

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MSTR Stock Forecast in 2030:

Interest rates play an important role in the equity markets. When rates are high, it can discount the present value of future cash flows, which can put pressure on growth stocks such as MicroStrategy. This is because the majority of MicroStrategy's profits are expected to be realized in the future. Higher interest rates increase a company's cost of capital. If you're curious about learning about stockholder equity and how the balance sheet is evaluated, check out the resources here.

Long-term investors should also look at a company's historical revenue growth and decide whether they think it is likely to increase, slow down or remain stagnant. MicroStrategy's revenue has grown at an average rate of 0.56% annually over the past 5 years.

MicroStrategy operates in the Information Technology sector and has a forward P/E of 1250, suggesting it is considered a growth stock. Investors in growth stocks will generally focus on the company's future plans and industry growth, while value investors will see stable revenue streams and dividend growth.

MSTR Price Action: According to Benzinga Pro, MicroStrategy shares are roughly flat at $1,860.73 at the time of publication Tuesday.

Image: Pete Linforth from Pixabay