Highlights:
- MicroStrategy faces losses in adapting to new digital asset accounting standards due to Bitcoin's depreciation.
- Analysts project an average upside potential of 78.05% for MicroStrategy stock.
- GuruFocus estimates suggest a significant downside of 91.78% from MicroStrategy's current price.
MicroStrategy (MSTR, Financial) is adjusting to new accounting standards for digital assets amid a turbulent year for Bitcoin. The company, renowned for its significant Bitcoin holdings, reported owning 528,185 bitcoins by the end of March. These were acquired at an average price of $67,458. Notably, recent acquisitions amounted to 80,715 bitcoins, with an average acquisition cost of $94,922. Bitcoin’s year-to-date price has decreased by 17.6%, currently hovering around $76,945.
Wall Street Analysts Forecast
According to forecasts from 13 analysts, MicroStrategy (MSTR, Financial) could reach an average price target of $423.66 over the next year. The high estimate stands at $600.00, while the low is $187.50. This average target price indicates a potential upside of 78.05% from the present price of $237.95. For more detailed forecasts, visit the MicroStrategy (MSTR) Forecast page.
The consensus recommendation from 12 brokerage firms rates MicroStrategy (MSTR, Financial) at an average of 2.0, which aligns with an "Outperform" status. This rating scale ranges from 1 (Strong Buy) to 5 (Sell), placing MicroStrategy in a favorable position.
However, when considering long-term valuation, GuruFocus offers a more cautious outlook. The estimated GF Value for MicroStrategy (MSTR, Financial) over the next year is $19.55. This implies a significant downside of 91.78% from the current price of $237.95. The GF Value represents GuruFocus’s calculated fair value based on historical trading multiples, past business growth, and future performance projections. For further detailed evaluations, visit the MicroStrategy (MSTR) Summary page.
