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MicroStrategy (NASDAQ: MSTR) reported a strong Q4 2026 earnings performance, with an EPS of $16.37, significantly surpassing the estimated EPS of $-18.64 by 187.82%. Revenue increased by $2.29 million year-over-year, reflecting modest growth, and the company has a track record of exceeding EPS estimates. However, analysts have lowered their average price target for MSTR to $312.78, a 30.3% reduction from the previous $448.78, with individual targets ranging from $185.00 to $450.00. While some analysts, such as Joseph Vafi of Canaccord Genuity and Gautam Chhugani of Bernstein, maintain positive ratings, they have adjusted their targets downward. Despite revenue growth of 1.9% over the past three months, MicroStrategy faces significant challenges in profitability and operational efficiency. The company's net margin stands at -10261.15%, and its return on equity (ROE) is -26.17%, both far below industry standards. These financial metrics, combined with reduced price targets, highlight ongoing difficulties in achieving sustainable growth and profitability, even as the company continues to deliver earnings surprises.
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About MSTR

Strategy Inc is a bitcoin treasury company and a provider of business intelligence services. It is designed to provide investors varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed-income ... Read more

Ways to trade options* on MSTR

Bearish Option Strategy: Long Puts

Traders buy a single put option on a stock or ETF. This strategy can benefit from a price drop while risking more capital than a spread.

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