What's Going On With MicroStrategy Stock?

MicroStrategy Incorporated MSTR shares are trading higher Wednesday amid a rise in the price of Bitcoin. Here's a look at what to know. 

The Details:

Bitcoin is trading above the $64,000 mark at the time of publication, up more than 4% over the past 24 hours. Last week, Wells Fargo and JPMorgan Chase disclosed their spot Bitcoin ETF holdings, likely triggering the cryptocurrency's most recent move higher. 

CNBC's Jim Cramer advised investors not to buy MicroStrategy shares during Monday's "Lightning Round."

"If you want bitcoin, don't buy MicroStrategy. Buy bitcoin," Cramer said. 

MicroStrategy is the largest corporate holder of the cryptocurrency with 214,400 bitcoin as of April 24. 

According to data from Benzinga Pro, MicroStrategy shares are trading below the stock’s 50-day moving average of $1,416 and 21.95% of available shares are being sold short. 

Related News: What’s Going On With Nikola’s Stock?

Is MSTR A Good Stock To Buy?

When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.

MicroStrategy has reported average annual revenue growth of 0.4% over the past 5 years.

It's also important to pay attention to valuation when deciding whether to buy a stock. MicroStrategy has a forward P/E ratio of 1111.11. This means investors are paying $1111.11 for each dollar of expected earnings in the future. The average forward P/E ratio of MicroStrategy's peers is 54.29.

Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO.

MSTR Price Action: According to Benzinga Pro, MicroStrategy shares are up 5.28% at $1,366.14 at the time of publication Wednesday.

Image: Shutterstock