MicroStrategy (MSTR) currently has an average brokerage recommendation (ABR) of 1.38 on a scale of 1 to 5, calculated from 13 brokerage firms, indicating a strong buy sentiment. Out of the 13 recommendations, 11 are Strong Buy (84.6%) and one is Buy (7.7%). Despite this positive outlook, studies suggest brokerage recommendations often fail to direct investors accurately, with a bias towards positive ratings due to the vested interests of these firms.
The Zacks Consensus Estimate for MicroStrategy’s earnings for the current year remains unchanged at -$15.73, resulting in a Zacks Rank #3 (Hold), implying a cautious perspective despite the strong ABR. Investors are advised to corroborate brokerage recommendations with independent analyses, such as the Zacks Rank, which is based on earnings estimate revisions, offering a more timely reflection of future stock price movements.
