Information Provided By:
Fly News Breaks for October 30, 2019
MSTR
Oct 30, 2019 | 07:14 EDT
Citi analyst Tyler Radke says MicroStrategy's execution challenges resurfaced in Q3 as the company's sales results disappointed due to weakness in Europe. Further, the analyst does not really see a true "cloud transition" scenario at the company given management's insistence on giving customers choice and a large enterprise customer base that is mainly deployed on-premise today. He believes the stock remains a "show-me" story and keeps a Neutral rating on MicroStrategy with a price target of $150, down from $153.
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