7 Unstoppable Artificial Intelligence (AI) Stocks To Buy Now

4. MicroStrategy Inc. (NASDAQ:MSTR)

Number of Hedge Fund Holders: 26

Performance (Year-to-Date) as of September 4: 93.66%

MicroStrategy Inc. (NASDAQ:MSTR) is a software company that specializes in enterprise analytics software, providing AI-powered tools and platforms that help businesses analyze large amounts of data to make data-driven decisions.

This company remains the world’s largest corporate holder of Bitcoin, owning 226,500 bitcoins, with a total market value of $15 billion as of August this year. During the first and second quarters of 2024, the total Bitcoin holdings increased by 13.3% and 5.6%, respectively.

Year-to-date, bitcoin’s price has appreciated, significantly boosted by the approval of Spot Bitcoin Exchange Traded Products (ETPs). This development has attracted substantial institutional interest. It is currently held by 26 hedge funds, with total shares amounting to 13,864,000. The largest stake has a position of $1,909,738,272, held by Citadel Investment Group.

Yet, the company underperformed Street expectations in Q2 of 2024. There was a 7.44% year-over-year decline in revenue, generating a $111.44 million revenue. The loss per share was $0.57. In this quarter, it continued its shift towards cloud offering, resulting in subscription services revenue of $24 million, an increase of 21% year-over-year. This growth was due to cloud migrations and new customers.

MicroStrategy Inc.’s (NASDAQ:MSTR) introduction of Auto Express (a no-code tool for building AI BI bots), availability of MicroStrategy ONE on Google Cloud Marketplace, and joining Azure and AWS, are instances of how the company leverages AI features for its growth. This positions it 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.”