MicroStrategy (MSTR) Sees Profit Growth Surpassing Revenue, Defying Pessimistic Market Trends
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 01 2025
0mins
Should l Buy STRF?
Source: Yahoo Finance
Profitability Growth: MicroStrategy (MSTR) has seen a significant increase in profitability, with earnings growing at 34.3% annually over the past five years, while future earnings are expected to grow at 19.17% per year, surpassing the broader US market estimate.
Revenue Concerns: Despite strong profit growth, revenue is projected to grow only 0.8% annually, raising concerns about the sustainability of earnings, especially given the high level of non-cash earnings that may not translate into actual cash flow.
Valuation Discount: MSTR trades at a low Price-To-Earnings Ratio of 10x, significantly below industry averages, indicating market skepticism regarding the quality and sustainability of its earnings compared to higher-rated peers.
Investor Sentiment: The disconnect between profit and revenue growth presents a dilemma for investors, who must determine whether the current valuation reflects a value opportunity or justified caution regarding MSTR's future performance.
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Analyst Views on STRF
Wall Street analysts forecast STRF stock price to rise
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Current: 98.250
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Current: 98.250
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About STRF
MicroStrategy Incorporated, doing business as Strategy, is a Bitcoin Treasury Company. The Company is engaged in the design, development, marketing, and sales of its software platform through licensing arrangements and cloud subscriptions and related services. It has adopted Bitcoin as its primary treasury reserve asset. By using proceeds from equity and debt financings, as well as cash flows from its operations, it accumulates Bitcoin and advocates for its role as digital capital. It provides investors with varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed income instruments. In addition, it provides artificial intelligence (AI)-powered enterprise analytics software. Its cloud-native flagship, MicroStrategy ONE, powers some of the analytics deployments for customers spanning a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications and the public sector.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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