What's Going On With MicroStrategy Stock?

MicroStrategy Incorporated MSTR shares are trading lower Tuesday amid a drop in the price of Bitcoin BTC/USD. Here's a look at what's going on. 

The Details:

Bitcoin is down by more than 3% over the past 24 hours at $67,171.52, according to data from Benzinga Pro. MicroStrategy is the largest institutional holder of bitcoin with 214,278 bitcoins valued at approximately $5.074 billion. 

Last week, MicroStrategy's executive chairman Michael Saylor agreed to a $40 million settlement to resolve a tax fraud lawsuit filed in August 2022 which accused Saylor of failing to pay over $25 million in income taxes. 

A MicroStrategy spokesperson stated, “This was a personal tax matter involving Mr. Saylor. MicroStrategy was not responsible for his day-to-day affairs and did not oversee his individual tax responsibilities.”

The company also confirmed Saylor would personally pay the settlement amount in full.

According to data from Benzinga Pro, MicroStrategy is trading above the stock’s 50-day moving average of $1,430 and 21.62% of available shares are being sold short. 

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MSTR Stock Prediction 2024:

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

MicroStrategy's revenue has grown at an average rate of 0.4% annually over the past 5 years. The average 1-year price target from analysts is $1790.25, representing an expected 11.9% upside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of MicroStrategy have seen an annualized return of 45.78%, outperforming the S&P 500 index by 37.71%. This compares to 27.68% growth in the overall Information Technology sector. MicroStrategy has a beta of 0.65.

MSTR Price Action: According to Benzinga Pro,MicroStrategy shares are down 3.56% at $1,543.00 at the time of publication Tuesday.

Image: Tamim Tarin from Pixabay