10 Best Performing Stocks in 2024

7. MicroStrategy Inc. (NASDAQ:MSTR)

Year-to-Date Performance as of September 23: 137.22%

Market Cap as of September 23: $27.58 billion

Number of Hedge Fund Holders: 26

MicroStrategy Inc. (NASDAQ:MSTR) is a business intelligence software company that provides enterprise analytics software and service, known for its enterprise data warehousing platform, which helps businesses collect, analyze, and report on data. It also has a significant investment in Bitcoin, making it one of the largest corporate holders of the cryptocurrency.

Its Bitcoin acquisitions have had a mixed impact on the company. While they have generated substantial returns, they have also led to a significant increase in net debt, from $531 million to $3.8 billion. Moreover, in the second quarter of 2024, there was a 7.44% year-over-year drop in revenue, with a loss per share of $0.57. Some of this decline was offset by the 21% year-over-year increase in subscription services revenue due to cloud migrations and new customers.

The company had a strong performance so far this year, with its stock price increasing by nearly 100% by July 11. The company announced a 10-for-1 stock split on that date, which was distributed as a stock dividend on August 7 to shareholders of record on August 1. Given that Bitcoin makes up most of its value, the stock is likely to be volatile, reflecting the inherent volatility of cryptocurrencies.

Its introduction of Auto Express, availability of MicroStrategy ONE on Google Cloud Marketplace, and joining Azure and AWS also places the company as a major player in the AI industry.

While AI companies have faced challenges recently, MicroStrategy Inc. (NASDAQ:MSTR) offers significant growth potential, particularly given its substantial returns from Bitcoin acquisitions.

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.”