Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 16 Jan, 25 | MSTR | Buy | USD 367.0 | USD 407.0 | USD 430.0 | 18 days | 17.2% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions. The company also provides MicroStrategy Support that helps customers achieve their system availability and usage goals through highly responsive troubleshooting and assistance; MicroStrategy Consulting, which provides architecture and implementation services to help customers realize their desired results; and MicroStrategy Education that offers free and paid learning options. In addition, it engages in the development of bitcoin. The company offers its services through direct sales force and channel partners. It serves the U.S. government, state and local governments, and government agencies, as well as a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.
Lower Debt-Equity Ratio
(1.12x in Q3 FY24 vs 2.59x in Q3 FY23)
Bitcoin Holdings Growth
MicroStrategy increased its bitcoin holdings by 11% in Q3 2024, totaling 252,220 bitcoins valued at $16.0 billion.
Increase in Operating Loss
(USD 432.6 million in Q3 FY24 vs USD 25.2 million in Q3 FY23)
Lower EBITDA Margin
(-12.5% in Q3 FY24 vs 8.5% in Q3 FY23)
Bitcoin Price Volatility, Leverage Risk, Impairment Risk on Digital Assets, Regulatory Uncertainty, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 367.0 | 327.0 | 407.0 | 430.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (on the daily chart)
The share price of MSTR is currently hovering near key support levels, suggesting a potential for short-term gains. As the stock rises, it is anticipated to encounter a notable resistance level at USD 423, which may be reached in the next 2-4 weeks. Should the stock break through this level, it could trigger additional buying momentum and pave the way for further gains.
Technical Indicators Analysis (On the daily chart)
On the daily chart, the 14-period Relative Strength Index (RSI) is trending higher, indicating a positive bias. Trading volumes seem to confirm this upward trend. Furthermore, the stock price moving above its 21-day Simple Moving Average (SMA), supporting positive bias.
As per the above-mentioned price action and technical indicators analysis, MicroStrategy Incorporated (NASDAQ: MSTR) is looking technically well-placed on the chart, and a ‘Buy’ recommendation has been given on the stock.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Application
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| MSTR MicroStrategy Incorporated |
14.49 5.03% | 302.76 | - | 1250.00 | 209.17 | 25.90 | 218.21 | -447.3154 |
| CRM Salesforce.com Inc |
1.19 0.44% | 269.55 | 100.89 | 27.47 | 7.42 | 4.34 | 7.44 | 26.81 |
| SAPGF SAP SE |
-0.47 0.17% | 270.00 | 76.28 | 22.88 | 5.61 | 3.84 | 5.59 | 26.18 |
| SAP SAP SE ADR |
0.58 0.22% | 269.02 | 75.80 | 22.37 | 5.62 | 3.75 | 5.51 | 25.79 |
| INTU Intuit Inc |
0.73 0.12% | 614.72 | 55.56 | 32.68 | 11.28 | 10.07 | 11.62 | 40.11 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 16, 2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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