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Microstrategy Inc. reported Q2 earnings on August 1, but revenue failed to meet expectations, and MSRT Stock fell 18% before recovery. MSTR’s share price recently gained 5.03%. Also, the analysis of recent trades states that nearly 13% of investors opened trades with bullish expectations, while 86% remained bearish. The remaining 1% was neutral. In the first quarter of 2023, Microstrategy acquired 12,800 Bitcoins, spending around $361.4 Million. As of July 31, 2023, they owned 152,800 BTC, worth about $45.53 Billion. During the customary earnings call, officials cited issues with revenue from product licensing, which were balanced by revenue from cloud businesses. Total software licensing revenue was $35.4 Million, up 4% year-over-year (YoY). Total subscription service revenue increased by 42% to $19.9 Million. Product license revenue fell 23% YoY to $15.5 Million, and Product support revenue was down by 1% YoY to $66.1 Million. MSTR, at press time, is trading at $389.43, gaining 5.03%; the previous close and open were at $370.82 and $380.00, respectively. The 52-week range is from $132.56 to $475.09, indicating strong bullish momentum could propel the price to new heights. With an average volume of 815,971 shares, the market cap is $5.467 Billion. The trailing twelve-month (ttm) earnings per share (EPS) is negative $87.76, showcasing financial weakness. Analysts gave the stock a 2.60 rating for moderate buy and estimated a price target of $390.00 with a 0.1% upside. Microstrategy reported its Q2 earnings on August 1, 2023, where the reported revenue of $120.4 Million failed to beat the estimated value of $123.084 Million by 2.18%. Compared to the previous quarter, revenue fell by 1.37%. At the same time, the reported earnings of $1.52 per share surpassed the expected value of minus $0.19 by a whopping 900.00%. Compared to the previous quarter, EPS gained 102.53%. Operating expenses fell 88.19% to $119.99 Million, and operating margin (ttm) declined to 46.19%. The (ttm) revenue is $500.23 Million, and the (YoY) quarterly revenue growth is down by 1.40%. Total cash in hand at the end of the most recent quarter (mrq) was $69.97 Million, while total debt (mrq) was $2.24 Billion. MSTR stock price achieved a golden crossover on April 12, 2023; since then, it has shown positive momentum. When the 50 EMA crosses the 200 from below, it’s a golden crossover and puts the price action bullish in the long term. As evident, the price went up nearly 82% since the crossover before correcting. Following the recent sharp drop, the second last candle formed is a hammer. It foreshadows a price reversal; the price could cross the selling zone if the current gain crosses the immediate resistance at $436.28 and sustains above it. If not, the price could drop to the buying zone. The views and opinions stated by the author, or any other person named in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
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