Originally published on: October 31, 2024
MicroStrategy faced a setback with its third-quarter earnings missing estimates, causing a dip in its stock price by 5.9%. The software business reported a decline in revenue to $116.1 million, slightly below analyst expectations. Despite achieving a 5.1% return on Bitcoin holdings, MicroStrategy’s overall gross profit fell short.
The company’s rebranding as a “Bitcoin development company” has not shielded it from market fluctuations. Following the earnings report, MicroStrategy’s stock price dropped by 4.23% during the trading day and further dipped by 1.75% in after-hours trading.
CEO Michael Saylor remains optimistic about the company’s future and compared its growth to tech giants like Nvidia and Tesla. However, economist Timothy Peterson warned of potential volatility post the U.S. presidential election, particularly if Bitcoin prices decline.
As MicroStrategy plans to raise $42 billion over the next three years to accumulate more Bitcoin, investors are treading carefully in light of market uncertainties. Stay informed and make well-informed decisions in the ever-changing investment landscape.
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