From cointelegraph by Ciaran Lyons

Shares in MicroStrategy dropped about 5.9% after the firm’s third-quarter earnings fell just short of consensus estimates, while an analyst warned that the stock could be in for additional headwinds after the United States elections. 

According to an Oct. 30 announcement from MicroStrategy, the firm’s software business reported $116.1 million in revenue, a 10.3% decline from Q3 2023, and about 5.22% below analysts’ expectations.

It also noted that during the quarter, the firm achieved a 5.1% return on its Bitcoin BTC$72,365 holdings, alongside an overall gross profit of $81.7 million, representing a 70.4% gross margin.

This comes as the firm has been rebranding itself as a “Bitcoin development company” this year.

MSTR plunges as earnings miss analysts’ mark

MicroStrategy’s share price declined about 4.23% during the Oct. 30 trading day to $247.31. 

In after-hours trading, the stock price dropped a further 1.75%, currently priced at $242.99, according to Google Finance data.

MSTR closed the Oct. 30 trading day with a stock price of $247.31. Source: Google Finance

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In an earnings call, Saylor compared MicroStrategy’s performance to other major tech companies like Nvidia (NVDA) and Tesla (TSLA) since August 2020, noting that MicroStrategy has achieved a significant 1,989% growth, outperforming Nvidia’s growth of 1,165%.

Other tech companies yet to embrace ‘digital capital’

Saylor said, “They are all great companies, but at the end of the day, these companies haven’t embraced digital capital.”

While he noted that Nvidia’s strategy is more difficult to copy, MicroStrategy’s is more straightforward to replicate, explaining that the firm has been “publishing the playbook” and will continue to do so.