Upside case
Bull case
—
The bull case requires both strong earnings delivery and the market pricing STRC more generously than it does today.
Analysis OverviewHoldUpdated May 1, 2026
MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
1
analysts
0 bullish · 0 bearish · 1 covering STRC
Strong Buy
0
Buy
0
Hold
1
Sell
0
Strong Sell
0
Consensus Target
$252
+152.1% vs today
Scenario Range
— – —
Model bear to bull value window
Coverage
1
Published analyst ratings
Valuation Context
1.3x
Forward P/E · Market cap $33.4B
STRC price targets
Three scenarios for where STRC stock could go
Current
~$100
Confidence
21 / 100
Updated
May 1, 2026
Market caseClosest to today
Base case
—
The base case reflects analyst consensus expectations — steady delivery without requiring a major catalyst or re-rating.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock
STRC · NASDAQTechnologySoftware - ApplicationDecember year-end
MicroStrategy is an enterprise analytics and mobility software company that provides business intelligence platforms to help organizations analyze and visualize their data. It generates revenue primarily through software licensing (~60%) and cloud-based subscription services (~40%), supplemented by related consulting and support services. The company's key advantage is its long-standing expertise in enterprise analytics — particularly its HyperIntelligence platform — and its strategic pivot to become a major corporate holder of Bitcoin, which has created significant brand recognition and financial optionality.
Market Cap
$33.4B
Revenue TTM
$490M
Net Income TTM
-$12.4B
Net Margin
-2519.4%
STRC Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
25%Exceptional
5 quarters tracked
Revenue Beat Rate
100%Exceptional
vs consensus estimates
Avg EPS Surprise
-6379.5%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q4 2025
Q1 2026
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 0 of 4Q4 2025
EPS
$8.83/—
Revenue
$129M/—
Q1 2026
EPS
$-42.30/$-0.08
Revenue
$123M/$122M
Q1 2026
EPS
$-42.93/$-0.08
Revenue
$123M/$119M
Q2 2026
EPS
$-38.25/$-0.86
Revenue
$124M/$121M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q4 2025 | $8.83/— | — | $129M/— | — |
| Q1 2026 | $-42.30/$-0.08 | -52777.3% | $123M/$122M | +1.0% |
| Q1 2026 | $-42.93/$-0.08 | -53562.5% | $123M/$119M | +3.2% |
| Q2 2026 | $-38.25/$-0.86 | -4337.4% | $124M/$121M | +2.9% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$495M
+0.9% YoY
FY2
$502M
+1.3% YoY
EPS Outlook
FY1
$10.70
+128.4% YoY
FY2
$-0.15
-101.4% YoY
Trailing FCF (TTM)$7.6B
FCF Margin: 1551.2%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
STRC beat EPS estimates in 0 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
STRC Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $8M
Product Mix
Latest annual revenue by segment or product family
Product Development Contract Revenue
65.8%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Product Development Contract Revenue is the largest disclosed segment at 65.8% of FY 2024 revenue, with no year-over-year comparison yet.
STRC Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $4391 — implies +4297.4% from today's price.
Upside to Fair Value
4297.4%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
STRC
-6.6x
vs
S&P 500
25.1x
126% discount
vs Technology Trailing P/E
STRC
-6.6x
vs
Technology
27.7x
124% discount
vs STRC 5Y Avg P/E
Today
-6.6x
vs
5Y Average
—
Benchmark unavailable
Forward PE
1.3x
S&P 500
19.1x
-93%
Technology
21.8x
-94%
5Y Avg
—
—
Trailing PE
-6.6x
S&P 500
25.1x
-126%
Technology
27.7x
-124%
5Y Avg
—
—
PEG Ratio
—
S&P 500
1.70x
—
Technology
1.48x
—
5Y Avg
—
—
EV/EBITDA
—
S&P 500
15.3x
—
Technology
17.5x
—
5Y Avg
—
—
Price/FCF
—
S&P 500
21.4x
—
Technology
19.2x
—
5Y Avg
—
—
Price/Sales
69.9x
S&P 500
3.1x
+2170%
Technology
2.4x
+2775%
5Y Avg
—
—
Dividend Yield
1.30%
S&P 500
1.90%
-32%
Technology
1.17%
+11%
5Y Avg
1.31%
-1%
| Metric | STRC | S&P 500 | Technology | 5Y Avg STRC |
|---|---|---|---|---|
| Forward PE | 1.3x | 19.1x-93% | 21.8x-94% | — |
| Trailing PE | -6.6x | 25.1x-126% | 27.7x-124% | — |
| PEG Ratio | — | 1.70x | 1.48x | — |
| EV/EBITDA | — | 15.3x | 17.5x | — |
| Price/FCF | — | 21.4x | 19.2x | — |
| Price/Sales | 69.9x | 3.1x+2170% | 2.4x+2775% | — |
| Dividend Yield | 1.30% | 1.90% | 1.17% | 1.31% |
STRC trades above S&P 500 benchmarks on 1 of 3 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolSTRC Financial Health
Verdict
Stressed
STRC generates $7.6B in free cash flow at a 1551.2% margin — returns 1.3% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$490M
Revenue Growth
TTM vs prior year
+6.8%
Gross Margin
Gross profit as a share of revenue
68.1%
Operating Margin
Operating income divided by revenue
94.2%
Net Margin
Net income divided by revenue
-2519.4%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$-37.01
Free Cash Flow (TTM)
Cash generation after capex
$7.6B
FCF Margin
FCF as share of revenue — the primary cash quality signal
1551.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
-9.9%
ROA
Return on assets, trailing twelve months
-19.4%
Cash & Equivalents
Liquid assets on the balance sheet
$2.3B
Net Debt
Total debt minus cash
$6.0B
Debt Serviceability
Net debt as a multiple of annual free cash flow
0.8× FCF
~0.8 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
-24.1%
* Elevated by buyback-compressed equity — compare ROIC (-9.9%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.3%
Dividend
1.3%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$1.30
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Current diluted share count
334M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageSTRC Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Market Liquidity and Price Risk
STRC is designed to trade around $100, but its price is subject to market supply and demand. A sudden surge in selling pressure, possibly due to negative news or a Bitcoin crash, could drive the price below $100, leading to a potential loss of confidence in its stability.
High Risk
Investment Risk (No FDIC Insurance)
STRC is not insured by the government, relying on Strategy's financial health and Bitcoin reserves. In a worst-case scenario, such as a significant Bitcoin price crash or corporate bankruptcy, the principal and dividends could be at risk.
High Risk
Dependence on Bitcoin and Balance Sheet Volatility
Strategy's heavy leverage to acquire Bitcoin means a sharp decline in Bitcoin's price could jeopardize dividend payments or the company's solvency. STRC's financial strength is closely tied to Bitcoin's market value, creating a valuation-based risk.
Medium
Funding Model and Refinancing Risk
Strategy's ability to pay STRC dividends relies on cash flow or reserves, with current operations not generating enough income to cover dividends. If Bitcoin's price falls below acquisition costs, the company may be forced to cut preferred share payments.
Medium
Variable and Non-Guaranteed Dividends
STRC pays a variable monthly dividend, currently around 11.5% annualized, but is not legally obligated to continue these payments. The dividend rate can be adjusted monthly based on market conditions, which may lead to fluctuations.
Medium
Perpetual Structure and Lack of Principal Repayment
STRC is a perpetual preferred stock with no maturity date or obligation for principal repayment. Investors hold a subordinate claim on the company's assets, which may expose them to greater risk.
Lower
Regulatory Risk
Governments are still developing regulations for Bitcoin and related companies. Significant regulatory shifts could impact Strategy's ability to raise capital and operate effectively.
Lower
Interest Rate Competition
While STRC offers a high yield, rising risk-free rates or increased pricing of Bitcoin risk could compress this premium. This may lead to STRC trading below par if investors seek better returns elsewhere.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why STRC Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
AI and Data Center Demand
Robust demand in AI and data center applications is a significant growth driver, offsetting softer trends in other sectors. STMicroelectronics is well-positioned to benefit from the increasing need for chips in these areas.
Semiconductor Supercycle
There are indications of a multi-year semiconductor supercycle driven by AI, leading to major hardware upgrades across various segments. This trend is expected to benefit companies like STMicroelectronics that supply essential chips.
Strategic Partnerships
A multi-year, multi-billion-dollar commercial engagement with Amazon (AWS) to supply advanced semiconductor technologies for AWS compute infrastructure is a key catalyst. This partnership includes warrants for AWS to acquire STMicroelectronics shares, indicating a strong commitment.
Product Innovation
STMicroelectronics is introducing new products, such as an 18-nanometer microcontroller selected by SpaceX for Starlink, and expanding its 800 VDC AI datacenter power conversion portfolio in collaboration with NVIDIA.
Financial Performance and Outlook
The company reported strong Q1 2026 results with robust revenue growth and improving margins, signaling a recovery and the return of operating leverage. Analysts have been revising estimates upward, and the company has reiterated its longer-term financial targets.
Operational Improvements
The company is implementing strategies like deploying humanoid robots in production sites to improve efficiency and throughput, and beginning volume production of China-manufactured STM32 microcontrollers to enhance supply resilience.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
STRC Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$99.96
52W Range Position
96%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$88.00
+13.6% from the low
52-Week High
$100.42
-0.5% from the high
1 Month
-0.04%
3 Month
+0.24%
YTD
+0.3%
1 Year
+12.8%
3Y CAGR
+4.1%
5Y CAGR
+2.4%
10Y CAGR
+1.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
STRC vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
1.3x
vs 2.4x median
-44% below peer median
Revenue Growth
+0.9%
vs +38.2% median
-98% below peer median
Net Margin
-2519.4%
vs -1276.3% median
-97% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
STR STRC MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock | $33.4B | 1.3x | +0.9% | -2519.4% | Hold | +152.1% |
MST MSTR Strategy Inc | $60.1B | 2.4x | +0.9% | -2519.4% | Buy | +56.2% |
MAR MARA Marathon Digital Holdings, Inc. | $4.8B | — | +29.5% | — | Buy | +27.0% |
RIO RIOT Riot Platforms, Inc. | $9.1B | — | +38.2% | — | Buy | +15.7% |
CLS CLSK CleanSpark, Inc. | $3.6B | — | +40.2% | -33.2% | Buy | +44.6% |
CIF CIFR Cipher Mining Inc. | $8.4B | — | +43.0% | — | Buy | +34.7% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
STRC Dividend and Capital Return
STRC returns 1.3% total yield, led by a 1.30% dividend.
Dividend UnknownFCF Well Covered
Total Shareholder Yield
1.3%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
1.30%
Payout Ratio
—
How STRC Splits Its Return
Div 1.30%
Dividend 1.30%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.30
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
Quarterly
9 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
334M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $3.77 | — | — | — |
| 2025 | $4.26 | — | 0.0% | 1.3% |
FAQ
7 questionsSTRC Investor Questions
Common questions answered from live analyst data and company financials.
01Is MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) stock a buy or sell in 2026?
MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) is rated Hold by Wall Street analysts as of 2026. Of 1 analysts covering the stock, 0 rate it Buy or Strong Buy, 1 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $252, implying +152.1% from the current price of $100.
02What is the STRC stock price target for 2026?
The Wall Street consensus price target for STRC is $252 based on 1 analyst estimates. The high-end target is $252 (+152.1% from today), and the low-end target is $252 (+152.1%).
03Is MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) stock overvalued in 2026?
STRC trades at 1.3x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) stock in 2026?
The primary risks for STRC in 2026 are: (1) Market Liquidity and Price Risk — STRC is designed to trade around $100, but its price is subject to market supply and demand. (2) Investment Risk (No FDIC Insurance) — STRC is not insured by the government, relying on Strategy's financial health and Bitcoin reserves. (3) Dependence on Bitcoin and Balance Sheet Volatility — Strategy's heavy leverage to acquire Bitcoin means a sharp decline in Bitcoin's price could jeopardize dividend payments or the company's solvency. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock's revenue and earnings forecast?
Analyst consensus estimates STRC will report consensus revenue of $495M (+0.9% year-over-year) and EPS of $10.70 (+128.4% year-over-year) for the upcoming fiscal year. The following year, analysts project $502M in revenue.
06When does MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) report its next earnings?
A confirmed upcoming earnings date for STRC is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock generate?
MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) generated $7.6B in free cash flow over the trailing twelve months — a free cash flow margin of 1551.2%. STRC returns capital to shareholders through dividends (1.3% yield) and share repurchases ($0 TTM).