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MicroStrategy shares slide despite optimistic earnings projections

EditorPollock Mondal
Published 14/09/2023, 00:48
© Reuters.
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MicroStrategy (MSTR) closed at $341.84 in the latest trading session on Wednesday, marking a -1.7% move from the previous day. This change trailed the S&P 500's 0.12% gain on the same day, while the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.29%.

Over the past month, shares of the business software company have dropped 7.55%. In contrast, the Computer and Technology sector gained 2.32%, and the S&P 500 rose by 0.09% during the same period.

As MicroStrategy approaches its next earnings report, Wall Street is seeking positive signs. The company is projected to report an earnings per share (EPS) of $0.74, a significant increase of 177.08% from the same quarter last year.

Analysts' consensus estimates for the full year suggest earnings of $31.05 per share and revenue of $502.4 million, marking changes of +124.92% and +0.63%, respectively, from last year.

Recent changes to analyst estimates for MicroStrategy reflect evolving short-term business trends, which can be seen as a sign of optimism about the company's business outlook.

In terms of valuation, MicroStrategy trades at a Forward Price-to-Earnings (P/E) ratio of 11.2, representing a discount compared to its industry's average Forward P/E of 28.03.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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