Are MicroStrategy’s Shares Worth Only $105? Investment Adviser Gary Black Weighs In
Posted On November 25, 2024
Renowned investment adviser Gary Black questioned the valuation of MicroStrategy Incorporated (NASDAQ:MSTR), suggesting the company’s stock was significantly overpriced.
What Happened: In a recent X post, Black, managing partner at The Future Fund, expressed his confusion over MicroStrategy’s stock price.
He pointed out that the company’s Bitcoin holdings, worth $31.2 billion when he made the observation, and its net debt of $4.2 billion equated to an equity value of $27 billion. However, the company’s stock market value stood at a whopping $106 billion.
Black estimated that MicroStrategy’s shares should be worth about $105/share, a figure 75% lower than its current trading price.
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