MicroStrategy MSTR stock hits 3-month high after CEO exits
Weak earnings coupled with overvalued fundamental metrics pose long-term downside risks for MSTR.
Market analysis
MicroStrategy (MSTR) stock opened higher on Aug. 3 as investors digested the news that its CEO Michael Saylor was leaving after a depressed quarterly earnings report.
Microstrategy stock up 142% since May lowsOn the daily chart, MSTR's price jumped nearly 14.5% to $324.55 per share, the highest level since May 6.
The stock's intraday gains are part of a broader rally that started on May 12 at $134. Since then, MSTR is up 142% compared to Nasdaq's gains of 26.81% over the same period.
MSTR daily price chart. Source: TradingViewThe August 3 MSTR rally came a day after MicroStrategy reported a $1 billion loss on its second quarter (Q2) earnings call. Interestingly, the company's major exposure to Bitcoin was a key reason for its poor quarterly performance.
To recap: MicroStrategy is an information technology company that provides business intelligence, mobile software, and cloud-based services. But one of his main business strategies is to invest in Bitcoin to hold it for the long term.
Unfortunately, holding Bitcoin cost MicroStrategy a $917.84 million loss in value on its 129,698 BTC holdings in Q2, primarily due to the crypto's 50% price drop since then. the beginning of the year. In comparison, MSTR fell 42% over the same period.
Daily BTC/USD price chart. Source: TradingViewIn addition, MicroStrategy's revenue fell 2.6% year over year to $122.07 million. Net quarterly losses prompted Saylor, who
Weak earnings coupled with overvalued fundamental metrics pose long-term downside risks for MSTR.
Market analysis
MicroStrategy (MSTR) stock opened higher on Aug. 3 as investors digested the news that its CEO Michael Saylor was leaving after a depressed quarterly earnings report.
Microstrategy stock up 142% since May lowsOn the daily chart, MSTR's price jumped nearly 14.5% to $324.55 per share, the highest level since May 6.
The stock's intraday gains are part of a broader rally that started on May 12 at $134. Since then, MSTR is up 142% compared to Nasdaq's gains of 26.81% over the same period.
MSTR daily price chart. Source: TradingViewThe August 3 MSTR rally came a day after MicroStrategy reported a $1 billion loss on its second quarter (Q2) earnings call. Interestingly, the company's major exposure to Bitcoin was a key reason for its poor quarterly performance.
To recap: MicroStrategy is an information technology company that provides business intelligence, mobile software, and cloud-based services. But one of his main business strategies is to invest in Bitcoin to hold it for the long term.
Unfortunately, holding Bitcoin cost MicroStrategy a $917.84 million loss in value on its 129,698 BTC holdings in Q2, primarily due to the crypto's 50% price drop since then. the beginning of the year. In comparison, MSTR fell 42% over the same period.
Daily BTC/USD price chart. Source: TradingViewIn addition, MicroStrategy's revenue fell 2.6% year over year to $122.07 million. Net quarterly losses prompted Saylor, who
What's Your Reaction?
