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Fly News Breaks for July 18, 2017
MSTR
Jul 18, 2017 | 06:01 EDT
Citi analyst Walter Pritchard opened a "positive catalyst watch" on MicroStrategy into the company's Q2 results. The analyst keeps a Neutral rating on the shares with a $200 price target. The provider of enterprise software platforms closed yesterday up $1.09 to $185.82. Estimates provide a "good possibility of a positive surprise which should take shares higher," Pritchard tells investors in a research note partially titled "2Q17 set-up too compelling to ignore." He points out that while the company has struggled recently to grow license revenue, Q2 marks the easiest comp in five quarters with license revenue declining 20% year-over-year a year ago. The analyst attributes volatile business trends for why he's not upgrading the shares to Buy.
News For MSTR From the Last 2 Days
MSTR
Mar 28, 2024 | 09:29 EDT
In a recently published report, Kerrisdale Capital said it was long Bitcoin and short shares of MicroStrategy, "a proxy for bitcoin which trades at an unjustifiable premium to the digital asset that drives its value." The report notes "shares of MicroStrategy have soared amid a recent rise in the price of bitcoin but, as is often the case with crypto, things have gotten carried away. The bitcoin price currently implied by MicroStrategy's stock is now over $177k, i.e., two and a half times the spot price of bitcoin. The days when MicroStrategy shares represented a rare, unique way to gain access to bitcoin are long over." "None of the reasons commonly provided for MicroStrategy's relative attractiveness justify paying well over double for the same coin. MicroStrategy's trading history and basic common sense suggests the current inflated premium will contract, much as it has on prior occasions, providing a compelling opportunity for a pair trade," Kerrisdale adds. Reference Link