MSTR

Microstrategy Inc

TMT


Presented:04/20/2016
Price:$188.28
Cap:$2.18B
Current Price:$194.31
Cap:$35.94B

Presented

Date04/20/2016
Price$188.28
Market Cap$2.18B
Ent Value$1.59B
P/E Ratio20.51x
Book Value$39.93
Div Yield0%
Shares O/S11.58M
Ave Daily Vol154,823
Short Int11.01%

Current

Price$194.31
Market Cap$35.94B
MicroStrategy, Inc. provides enterprise software platforms worldwide. The company offers MicroStrategy Analytics empowers organizations to analyze vast amounts of data and securely distribute actionable business insight throughout an enterprise through two distinct offerings MicroStrategy Analytics platform and MicroStrategy Analytics Desktop. The MicroStrategy Mobile enables organizations to rapidly build information-rich applications that deliver analytics combined with transactions, multimedia, and custom workflows, to mobile devices. The MicroStrategy Usher is a mobile identity and security platform designed to make identity management simple, seamless and secure. The MicroStrategy Secure Cloud is a platform for organizations that want to harness the power of enterprise analytics, mobility and security applications via the cloud. The company was founded by Michael J. Saylor and Sanju Bansal on November 17, 1989 and is headquartered in Vienna, VA.

Publicly traded companies mentioned herein: MicroStrategy Inc. (MSTR), Tableau (DATA), IBM (IBM) and SAP (SAP).

Highlights

The presenter is long shares of MicroStrategy on the thesis that the company’s ongoing successful product cycle should soon lead to margin expansion and eventual multiple expansion. The company is known for its best of breed, if somewhat clunky, business intelligence software products. MSTR’s customers tend to be very large enterprises with big data needs. Revenue, which is about 70% recurring, has generally been flat over the past handful of years. MSTR also has a subscription cloud business. CEO Michael Saylor, who founded the company a couple of decades ago, owns just under 20% of shares but controls 65% of the voting rights. The business underperformed for a period of several years until 2014, when Saylor began compensating key executives with stock for the very first time. The result has been a complete transformation of the company, according to the presenter, with management becoming laser focused and disposing of various non-core assets. 

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Idea Discussion

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