MicroStrategy shares fumble as Q3 earnings fall just short of estimates

MicroStrategy shares fumble as Q3 earnings fall just short of estimates

MicroStrategy’s stock price dropped after its Q3 earnings missed estimates, while an analyst forecasts more potential volatility after the US elections.

Shares in MicroStrategy dropped around 5.9% after the firm’s third-quarter earnings fell slightly short of consensus estimates, while an analyst warns the stock could be in for additional headwinds after the United States election, on daily crypto updates on Serialeturcesti.

According to an Oct. 30 report published by MicroStrategy, the firm reported $116.1 million in revenue, a 10.3% decline compared to Q3 2023, around 5.22% below analysts’ expectations.

It was also noted that during the quarter, the firm achieved a 5.1% return on its Bitcoin BTC$72,282 holdings, alongside an overall gross profit of $81.7 million, representing a 70.4% gross margin.

This comes as the firm has been rebranding itself as a “Bitcoin development company” this year.

MSTR plunges as earnings miss analysts’ mark

MicroStrategy’s share price declined approximately 4.23% during the Oct. 30 trading day to $247.31. 

In after-hours trading, the stock price dropped a further 1.75%, currently priced at $242.99, according to Google Finance data.

Markets, MicroStrategy, US Elections 2024, Michael Saylor
MSTR closed the Oct. 30 trading day with a stock price of $247.31. Source: Google Finance

In an earnings call, Saylor compared MicroStrategy’s performance to other major tech companies like Nvidia (NVDA) and Tesla (TSLA) since August 2020, noting that MicroStrategy has achieved a significant 1,989% growth, outperforming Nvidia’s growth of 1,165%.

Other tech companies yet to embrace ‘digital capital’

Saylor claimed that “they are all great companies, but at the end of the day, these companies haven’t embraced digital capital.”

While he noted that Nvidia’s strategy is more difficult to copy, MicroStrategy’s is more straightforward to replicate, explaining that the firm has been “publishing the playbook” and will continue to do so.

“MicroStrategy doesn’t just represent a company that made a good investment at the right time; we really represent the beginning of a wave of digital transformation of capital,” he added.

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