Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 1 Dec, 25 | MSTR | Buy | USD 156.0 | USD 170.0 | USD 180.0 | Same day | Closed |
17.55%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions. The company also provides MicroStrategy Support that helps customers achieve their system availability and usage goals through highly responsive troubleshooting and assistance; MicroStrategy Consulting, which provides architecture and implementation services to help customers realize their desired results; and MicroStrategy Education that offers free and paid learning options. In addition, it engages in the development of bitcoin. The company offers its services through direct sales force and channel partners. It serves the U.S. government, state and local governments, and government agencies, as well as a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.
Material Increase in Bitcoin Holdings: Bitcoin holdings expanded from approximately 616,000 BTC (Q3 FY24) to 640,808 BTC (October 26, 2025), representing an increase of ~24,000+ BTC, driven by strong capital-raising activity and continued accumulation strategy
Strong Growth in Subscription-Based Revenues: Subscription services revenue rose from USD 27.8 million in Q3 FY24 to USD 46.0 million in Q3 FY25, marking a 65.4% year-over-year increase, indicating successful expansion of the recurring-revenue platform
Elevated Exposure to Bitcoin Volatility: Unrealized gains of USD 3.9 billion in Q3 FY25 contrast with impairment charges of USD 412.1 million in Q3 FY24, underscoring a high degree of earnings volatility directly tied to bitcoin price movements
Heavy Reliance on Capital Raising to Drive Growth: Capital raised in Q3 FY25 amounted to USD 5.1 billion, compared with materially lower volumes a year earlier. Although growth-enabling, this reflects continued dependence on external financing and equity dilution risk
The company’s financial performance remains highly sensitive to bitcoin price volatility, creating significant uncertainty in earnings, valuation, and capital planning despite robust treasury execution
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 156.0 | 135.0 | 170.0 | 180.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Recovery in Operating Performance: The company delivered a significant turnaround in its financial performance during Q3 FY25, reporting operating income of USD 3.9 billion, compared to an operating loss of USD 432.6 million in Q3 FY24. This sharp improvement primarily reflected the adoption of fair value accounting and a substantial USD 3.9 billion unrealized gain on digital assets, demonstrating the material impact of rising bitcoin valuations on quarterly results.
Sustained Profitability Driven by Bitcoin-Linked Gains: Strategy recorded net income of USD 2.8 billion in Q3 FY25 versus a net loss of USD 340.2 million in the prior-year quarter, translating to diluted EPS of USD 8.42 compared to –USD 1.72 in Q3 FY24. This marks the company’s second consecutive quarter of strong profitability, underpinned by increased bitcoin holdings and favorable market price movements.
Ongoing Expansion of Bitcoin Treasury Assets: The company continued to expand its strategic bitcoin reserve, increasing total holdings to 640,808 BTC as of October 26, 2025, with a market value of approximately USD 70.9 billion at a bitcoin price of ~USD 110,600. Average acquisition cost remained materially below market value, reinforcing substantial embedded capital appreciation. Year-to-date BTC Yield reached 26%, with BTC Gain of 116,555 BTC reflecting accretive treasury operations.
Improving Software Segment Performance With Mixed Trends: Operationally, the software business delivered total revenues of USD 128.7 million, representing a 10.9% year-over-year increase in Q3 FY25. Subscription services revenue grew by 65.4% YoY, and product licenses plus subscription services rose 62.9%, signaling strengthened demand for analytics and cloud-based offerings. However, product support revenues declined 16.2%, and other services revenues fell 12.0%, indicating persistent pressure in legacy service lines.
Stable Margin Profile Despite Segmental Shifts: Gross profit increased to USD 90.7 million, up from USD 81.7 million in Q3 FY24, maintaining a stable gross margin of ~70% in both periods. The improvement in absolute profit reflects operating leverage from higher subscription revenues, even as support and services revenues softened.
Robust Capital Markets Execution: The company raised approximately USD 5.1 billion during Q3 FY25 through a diversified capital markets program, including common equity and preferred stock issuances, complemented by the successful IPO of STRC generating USD 2.5 billion earlier in the year. These inflows materially supported the expansion of bitcoin holdings and reinforced liquidity for ongoing treasury operations.
Reaffirmed Full-Year Guidance Supported by Treasury Momentum: Management reaffirmed FY25 guidance, projecting USD 34 billion in operating income, USD 24 billion in net income, and USD 80 EPS, assuming a year-end bitcoin price of USD 150,000. Bitcoin KPI targets were also reiterated—30% BTC Yield and USD 20 billion BTC USD Gain for the year—highlighting strong confidence in the company’s capital markets strategy and treasury execution.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Strategy Inc (NASDAQ: MSTR) at the current market price of USD 156.00, as on Dec 01, 2025 at 10:05 am PST.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Application
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| MSTR MicroStrategy Incorporated |
-6.97 4.99% | 132.66 | - | 1250.00 | 209.17 | 25.90 | 218.21 | -447.3154 |
| CRM Salesforce.com Inc |
-14.86 7.05% | 195.95 | 100.89 | 27.47 | 7.42 | 4.34 | 7.44 | 26.81 |
| SAPGF SAP SE |
-10.99 5.30% | 196.50 | 76.28 | 22.88 | 5.61 | 3.84 | 5.59 | 26.18 |
| SAP SAP SE ADR |
-9.86 4.76% | 197.37 | 75.80 | 22.37 | 5.62 | 3.75 | 5.51 | 25.79 |
| INTU Intuit Inc |
-53.08 10.90% | 434.04 | 55.56 | 32.68 | 11.28 | 10.07 | 11.62 | 40.11 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on December 1, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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