Home
News
- 1 Recently MicroStrategy has increased its Bitcoin holdings to 158,245 BTC.
- 2 This company has invested $147.3M in cash for the purchase of 5,455 Bitcoins.
MicroStrategy Incorporated works in the Business Intelligence and mobile software industry. The company was founded in the year 1989 and the current CEO of the company is Phong Q. Le. This firm has more than 2k employees. It has its headquarters in Virginia. It is traded as MSTR on the Nasdaq.
The MSTR has a huge PE ratio of 35.94. It indicates that the traders are ready to pay higher prices for the stock. The current EPS of the share is 16.33 USD, following a market cap of 4.615B. It follows up with 12.064M shares floating in the market available for trading. The following data indicates strong financial ratios for the MSTR stock.
The MSTR stock has a very good ROE ratio of 121.77% with a neutral ROA of 6.15%. The debt/equity ratio for the company is 273.74%, which makes it suitable for buying as the price can perform well in the long-term period.
For the MSTR share, following a year-on-year change in Q2 2023, the net cash at the company stands at $68.05M. It resulted in a decline of -9.9%, but the company’s ROIC has advanced by 1656.6%, resulting in a negative return of -15.7%.
MicroStrategy Incorporated Stock Performance Analysis
The revenue of the company is constant with no improvement year-on-year. With the flat revenue, the profit margin has highly declined, resulting in -294.39% for the year 2022. The debt of the company has slightly advanced, resulting in $2.46B. The company’s financials are negative and there is no sign of improvement.
Technical Summary of MSTR Stock
5 experts are expecting the MSTR share price to advance by 58% in one year resulting in a level of $520.00. The share is also currently trading below its average price. The max drawdown is expected up to the level of 210.00.
MSTR Share Technical Analysis
The share price of MSTR shares followed an uptrend for a long time trading inside a rising wedge pattern. The price has recently broken down below the pattern. The breakdown in price has changed the character of the market to negative resulting in lower low swings.
The share price has declined below the 50-day and 200-day EMAs. The EMAs are following a golden cross, but the price is unable to sustain above the EMAs. It represents the signs of a changing trend in the market.
The RSI of the MSTR on the daily timeframe is trading below the 50-level, indicating weakness in the trend of the market.
Conclusion
The MSTR share price is following a negative market structure after declining below the rising wedge channel. The financials of the company are also weak indicating unsustainability for the future. The EMAs are also acting uncertain to bearish. The RSI is following a negative momentum.
Therefore, the share price can decline to further lower levels unless it breaks above the level of $385.00.
Technical Levels
- Support levels for the MSTR share are – $188.00 and $270.00
- Resistance levels for the MSTR share are – $384.00 and $466.00
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
