- MicroStrategy (MSTR, Financial) faces a substantial unrealized loss due to Bitcoin market fluctuations.
- Analysts project potential upside, with some setting high price targets on MSTR shares.
- GuruFocus metrics indicate a significant discrepancy between current price and estimated GF Value.
MicroStrategy (MSTR) has reported an eye-catching unrealized loss of $5.9 billion in Q1 2025. This significant loss comes as a result of a mandatory accounting adjustment, which requires the company to value its Bitcoin holdings at current market prices. The announcement led to a precipitous 14% drop in the company's share price, closely following the decline in Bitcoin values. Despite these losses, MicroStrategy anticipates a temporary lift into earnings positivity due to a $13 billion accounting adjustment.
Wall Street Analysts' Price Projections
Wall Street analysts have set a varied range of price targets for MicroStrategy (MSTR, Financial) over the coming year. According to the projections from 13 analysts, the average target price stands at $423.66. This encompasses a high estimate of $600.00 and a low estimate of $187.50, suggesting potential volatility. Notably, the average target represents a 57.30% upside from the current share price of $269.34. Investors can view more in-depth estimate data on the Strategy (MSTR) Forecast page.
Brokerage firms have also weighed in with their recommendations for MSTR shares. The consensus recommendation, compiled from 12 firms, gives the stock an average rating of 2.0, marking it as an "Outperform." This rating is part of a scale where 1 indicates a Strong Buy and 5 suggests a Sell.
GuruFocus Valuation Insights
When considering the estimates from GuruFocus, the anticipated GF Value of MicroStrategy (MSTR, Financial) for the next year is projected at $19.55. This figure implies a striking downside of 92.74% relative to the current market price of $269.34. The GF Value reflects GuruFocus' calculation of the stock's fair trading value, derived from historical trading multiples, past business growth, and future performance forecasts. Investors can delve deeper into this valuation on the Strategy (MSTR) Summary page.
