The stock of MicroStrategy Inc. (NASDAQ:MSTR) is trading at all-time highs of $236.29, fuelled by investor excitement over its Bitcoin holdings as well as its suite of software solutions armed with artificial intelligence (AI) capabilities. With shares rallying 55 per cent in the past month, and year-to-date gains of 244 per cent, the stock is also getting a boost from BlackRock Inc. (NYSE:BLK), which has increased its stake in MicroStrategy to 5.2 per cent. The move signifies a broader confidence in MicroStrategy’s story to onboard institutional investors to the crypto market, while Bernstein analysts expect positive sentiment on Bitcoin, with the digital asset rising to $200,000 by 2025.
But despite the market euphoria, MicroStrategy critics such as Peter Schiff say MSTR is overvalued. In fact, he labelled the company’s stock ‘the most overvalued stock in the MSCI World Index’ on his YouTube channel earlier this month. Schiff is an avid gold promoter who has been an outspoken Bitcoin sceptic, but he clearly had MSTR stock on his mind as he said he sees risks that could cause MicroStrategy’s stock to plunge. Meanwhile, just looking at the technicals on this stock, there is no indication that it is in trouble: MSTR is trading well above its 200-day and 50-day moving averages – a pretty good sign for the stock’s momentum, and in turn, that it could rebound higher from current levels.
Source: Yahoo! Finance
