MicroStrategy Stock Could Be Headed for More Upside Momentum — Analyst

MicroStrategy stock has outperformed every company in the S&P 500 index since 2020, fueling market expectations for continued bullish momentum.

MicroStrategy stock has outperformed every company in the S&P 500 index since 2020, fueling market expectations for continued bullish momentum.

Shares of MicroStrategy have seen significant growth over the past four years, fueled by the company’s early adoption of Bitcoin ( BTC ) on its balance sheet, according to onchain intelligence firm Arkham.

The intelligence firm wrote in an Oct. 14 X post:

MicroStrategy flows. Source: Arkham Intelligence

The data comes nearly three weeks after leveraged MicroStrategy exchange-traded funds (ETFs) surpassed $400 million in net assets driven by retail investor appetite for leveraged Bitcoin BTC $67,958 exposure, Cointelegraph reported on Sept. 27.

MicroStrategy is one of the first publicly traded companies to hold Bitcoin on its balance sheet. The company’s strategy has been closely watched by investors and market participants.

MicroStrategy headed for more upside momentum — Analyst

MicroStrategy stock could be headed for more upside momentum, according to popular crypto analyst Tyler Durden.

In an Oct. 16 X post, Durden shared the chart below and stated:

MicroStrategy/WETH, two-hour chart. Source: Tyler

His analysis suggests that MicroStrategy stock could continue to climb. Over the past four years, MicroStrategy’s price surged by more than 1,540%, while the S&P 500 grew by just 111%, according to Nasdaq and Vantage data.

MicroStrategy vs. S&P 500, four-year chart. Source: TradingView

MicroStrategy S&P 500 addition unlikely anytime soon

Despite MicroStrategy’s strong performance, the company is unlikely to be added to the S&P 500 index soon, according to market participants.

An S&P 500 listing is “probably not” coming anytime soon, Seoyoung Kim, associate professor of finance at Santa Clara University’s Leavey School of Business, told Cointelegraph. 

What is concerning for MicroStrategy is that a candidate for listing on the S&P 500 must have been profitable in the most recent year and quarter to qualify.

According to Kim, “MicroStrategy has consistently seen a negative bottom line,” with the exception of the fourth quarter of 2023, “which was insufficient to bring it to an overall positive net income.”

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