MicroStrategy's stock has dropped about 5.9% after the company's third-quarter earnings results fell short of market expectations. An analyst also warned that this stock could face further challenges after the presidential election in the United States.

According to an announcement from MicroStrategy on October 30, the company's software revenue reached 116.1 million USD, down 10.3% compared to Q3 2023 and about 5.22% lower than analysts' predictions.

Additionally, in this quarter, MicroStrategy recorded a yield of 5.1% from its Bitcoin holdings, along with a total gross profit of 81.7 million USD, equivalent to a gross margin of 70.4%. Notably, the company has redefined itself as a “Bitcoin development company” this year.

Stock price plummets after earnings report

In trading on October 30, MicroStrategy's stock price fell about 4.23%, to 247.31 USD. In after-hours trading, the stock continued to decline by an additional 1.75%, currently trading at 242.99 USD, according to data from Google Finance.

MSTR closed the trading day on October 30 with a stock price of 247.31 USD | Source: Google Finance

In the Q3 earnings call, CEO Michael Saylor compared MicroStrategy's performance to major tech companies like Nvidia (NVDA) and Tesla (TSLA) since August 2020. He emphasized that MicroStrategy achieved an impressive growth of 1,989%, far exceeding Nvidia's growth of 1,165%.

Technology companies have not adopted digital capital

Saylor stated: “All of those companies are excellent, but ultimately, they have not yet embraced digital capital.” He noted that while Nvidia's strategy might be difficult to replicate, MicroStrategy's strategy is relatively easy to adopt, emphasizing that the company has “published a playbook” and will continue to do so in the future.

“MicroStrategy is not merely a company making a timely investment; we are truly a symbol of the beginning of a digital transformation wave in the capital sector,” he asserted. “Bitcoin is digital capital, and over time, dozens of companies will realize this, followed by hundreds, then thousands.”

Risk of stock price volatility around the U.S. election

However, economist Timothy Peterson warned that the stock price may face additional challenges if Bitcoin declines after the presidential election on November 5. Peterson stated that, given MicroStrategy's stock price sensitivity to Bitcoin, if BTC drops after the election, the company's stock price may see a sharper decline.

“If Bitcoin falls sharply after the election, the stock price of MicroStrategy (MSTR) could drop two to three times compared to Bitcoin,” he told Cointelegraph. “The use of leverage from Bitcoin holdings will increase the downside risk, causing MSTR to lose more value than Bitcoin in a downturn,” he added.

Conversely, if Bitcoin surpasses its all-time high of 73,679 USD – currently just 1.7% away with a trading price of 72,432 USD – Peterson stated that MSTR “has the potential for strong growth, as it is an alternative investment to exposure to Bitcoin.”

In another development, the company also revealed plans to raise 42 billion USD in the next three years to strengthen its Bitcoin holdings. This plan, called “Plan 21/21,” will include 21 billion USD from equity and 21 billion USD from fixed-income securities.

MicroStrategy also recently announced plans to raise 42 billion USD over the next three years to bolster its Bitcoin reserves. The company unveiled this plan on October 30, named “Plan 21/21,” which includes 21 billion USD from equity and 21 billion USD from fixed-income securities.

Source: https://tapchibitcoin.io/co-phieu-microstrategy-truot-doc-khi-loi-nhuan-quy-ba-khong-dat-ky-vong.html