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MicroStrategy (MSTR) Stock Jumps 6.3%: Will It Continue to Soar?

Zacks Equity Research
Updated ·2-min read

MicroStrategy MSTR shares rallied 6.3% in the last trading session to close at $332.35. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 40.2% gain over the past four weeks.

The increase in share price of MSTR can be attributed to rally in Bitcoin price. The cryptocurrency surged above the $30,000 mark since June 2022 per a CoinDesk report. MicroStrategy’s investments in Bitcoin are part of its corporate strategy, alongside growing its enterprise analytics software business and cloud solutions for customers.

This business software company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +104.7%. Revenues are expected to be $118.8 million, down 0.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

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For MicroStrategy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MSTR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

MicroStrategy is a member of the Zacks Computer - Software industry. One other stock in the same industry, Sapiens SPNS, finished the last trading session 0.4% lower at $20.71. SPNS has returned 8.9% over the past month.

For Sapiens , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.32. This represents a change of +3.2% from what the company reported a year ago. Sapiens currently has a Zacks Rank of #3 (Hold).

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MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report

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Zacks Investment Research