Why Did MicroStrategy’s Stock Price Climb 24%?
Over the last week, MicroStrategy (MSTR) has seen their stock price jump 24%, an increase which came directly after the company announced a $1.24 per share quarterly cash dividend.
MicroStrategy has invested heavily in Bitcoin (BTC), which has declined in recent weeks, dipping below $84,000 today. However, the company did very well with its Bitcoin investments late last year, as they banked millions on the cryptocurrency coin.
The analytical software company is outperforming the majority of the stock market. As the Dow, Nasdaq, and S&P 500 have all done poorly for the past few weeks, MSTR stock is performing very well. The company has managed to do well amid tariff fears and a high inflation rate, as well as during a time when the cryptocurrency market is struggling.
Expected to Perform Well
Comparing MSTR to other tech stocks, MicroStrategy looks promising. Tesla (TSLA) and Nvidia (NVDA) have both tanked in recent weeks and could have a long road to recovery. Neither of those stocks may do well until some of the tariff fears go away, but that kind of problem is not an issue for MicroStrategy, which may not be affected at all by tariffs.
MicroStrategy has grown in the last few years, gaining 2800% in five years. That is far better than the average return for the stock market, which is closer to 9% for all of 2024. While MicroStrategy is closely linked to Bitcoin’s success, it is not dependent on that, since their business operates outside of the crypto market.
The company also made a partnership with Microsoft back in 2023, which helped boost their public profile and gave them a very powerful client to work with. Using smart investment and wise partnerships, MicroStrategy has become a powerful company that could weather the current economic downturn very well.
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