10 Best Performing NASDAQ Stocks in 2024

4. MicroStrategy Inc. (NASDAQ:MSTR)

Year-to-Date Performance as of October 2: 157.58%

Number of Hedge Fund Holders: 26

MicroStrategy Inc. (NASDAQ:MSTR) is a software company that specializes in enterprise analytics and business intelligence solutions. MicroStrategy ONE, its flagship product, empowers non-technical users to easily access valuable insights for informed decision-making. MicroStrategy Cloud for Government provides essential threat-monitoring services tailored to meet the complex technical and regulatory needs of government agencies and financial institutions.

As of August this year, this company remains the world’s largest corporate holder of Bitcoin, owning 226,500 bitcoins with a total market value of $15 billion. Bitcoin holdings increased by 13.3% and 5.6% in the first and second quarters of 2024, respectively. While Bitcoin acquisitions have generated substantial returns, they have also contributed to a significant increase in net debt, rising from $531 million to $3.8 billion. Year-to-date, the price of Bitcoin has risen significantly, driven by the approval of Spot Bitcoin Exchange Traded Products (ETPs), attracting substantial institutional interest.

The company underperformed market expectations in Q2 2024, with a 7.44% year-over-year decline in revenue and a loss per share of $0.57. During this quarter, the company continued its transition to cloud offerings, resulting in subscription services revenue of $24 million, a 21% year-over-year increase driven by cloud migrations and new customers.

Its strategic moves, including the launch of Auto Express, the availability of MicroStrategy ONE on Google Cloud Marketplace, and partnerships with Azure and AWS, demonstrate its commitment to leveraging AI for growth. These initiatives solidify the company’s position as a leader in the AI industry.

Artisan Small Cap Fund stated the following regarding MicroStrategy Incorporated (NASDAQ:MSTR) in its Q2 2024 investor letter:

“Regarding MicroStrategy Incorporated (NASDAQ:MSTR), our decision to avoid this company comes down to a lack of conviction in its franchise characteristics. The stock has worked this year due to a rebound in the price of bitcoin. Since 2020, MicroStrategy has been focused on converting its cash and cash equivalent holdings, as well as issuing debt, to fund the purchase of bitcoin, which now makes up most of the company’s value.”