Shares in MicroStrategy Incorporated could enter into a technical downturn after the gains that were recorded over the last trading sessions.
Summary
● On the basis of various fundamental qualitative criteria, the company appears to be particularly poorly ranked from a medium and long-term investment perspective.
● From a short-term investment perspective, the company presents a deteriorated fundamental configuration.
● The company has a poor ESG score according to Refinitiv, which ranks companies by sector.
Strengths
● Analysts covering this company mostly recommend stock overweighting or purchase.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
Weaknesses
● The company's earnings growth outlook lacks momentum and is a weakness.
● The company does not generate enough profits, which is an alarming weak point.
● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
● For the past year, analysts have significantly revised downwards their profit estimates.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
● The company's earnings releases usually do not meet expectations.
MicroStrategy Incorporated is a bitcoin development company. It is engaged in the development of the bitcoin network through its activities in the financial markets, advocacy and technology. It designs, develops, markets and sales its software platform through licensing arrangements and cloud subscriptions and related services. It provides artificial intelligence-powered business intelligence, and enterprise analytics solutions. It offers software and services designed to turn complex, chaotic data environments into rich, reliable, and convenient information feeds for its customers. Its cloud-native flagship, MicroStrategy ONE, powers some of the analytics deployments in the world for customers spanning a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications and the public sector. MicroStrategy ONE provides non-technical users with the ability to directly access novel and actionable insights for decision-making.