In today’s accessible investment world, the stock market stands as a potentially lucrative option for many. We will provide essential information and a step-by-step process to buy MicroStrategy Incorporated stock, one of the most well-known software stocks
MicroStrategy is a global software company that provides business intelligence, mobile software, and cloud-based services. Founded in 1989 and headquartered in Tysons Corner, Virginia, MicroStrategy has over 1,900 employees worldwide. The company is listed on the NASDAQ stock exchange under the ticker symbol MSTR.
Summary
MicroStrategy stock can be purchased easily via a reputable online brokerage platform that offers the right tools and services for your needs. Experts recommend choosing a broker like Tastytrade that charges low fees, and provides an intuitive platform and 24/7 support.
When buying MicroStrategy stock, it’s important to research the company, determine your ideal position size, place a market or limit order to buy shares, and continually monitor your investment. Here’s the entire process in 8 actionable steps.
Key Metrics
Here are some key metrics for MicroStrategy Incorporated (MSTR) stock as of January 2024:
- Market Cap: $8.96 billion
- Revenue (TTM): $504 million
- EBITDA (TTM): $34.62 million
- Price/Earnings Ratio: 415.51
- 52 Week Range: $188.30 – $727.77
- Beta: 2.21
- Price to Sales Ratio: 17.77x
- Return on Assets: -4.08%
- Return on Equity: -88.35%
- Gross Margin: 81.33%
- Debt to Equity: 266.57%
- Short Interest: 28.99%
Step-by-Step Guide to Buy MicroStrategy Incorporated Stock
Step 1: Research and Analysis
Conduct thorough research on MicroStrategy as a company and its financial position. Understand how it generates revenue, its management team and competitive advantages. Assess news, trends and developments that may impact future performance.
Step 2: Select a Brokerage
Choose a reputable brokerage platform like Tastytrade that provides the tools and services you need. Consider transaction fees, available account types, payment methods, platform accessibility and customer support.
Step 3: Fund Your Account
Deposit funds into your Tastytrade account via bank transfer or debit card to cover your desired investment amount when purchasing MSTR stock.
Step 4: Determine Position Size
Decide how much you want to invest in MSTR stock based on your portfolio strategy and risk tolerance. This will dictate the number of shares you aim to purchase.
Step 5: Place a Buy Order
Use the Tastytrade platform to place a market order or limit order for buying MSTR stock shares. Specify the amount of shares or total investment amount.
Step 6: Review and Confirm Order
Double check the details of your order including ticker symbol, order type, share amount and price per share before confirming.
Step 7: Monitor Performance
Keep monitoring your MSTR investment including stock price fluctuations and MicroStrategy news that may impact future price action or your strategy.
Step 8: Evaluate and Adjust
Regularly reassess your MSTR stock position. Over time you may need to adjust your holdings or investment strategy based on performance or risk management.
Fees for buying MSTR Stock
Tastytrade charges very competitive stock trade commissions at just $1 per contract. So buying 100 shares of MSTR stock would cost only $1 in fees.
Taxes on Investing in MSTR Stock
Investment gains from buying MSTR stock are subject to capital gains taxation. Short-term capital gains tax rates for assets held under 1 year are your ordinary income tax rate. Long term capital gains rates for assets held over 1 year range from 0% to 20% depending on your income.
Conclusion
Investing in MicroStrategy requires an understanding of Bitcoin’s value proposition as most of the stock’s movement is tied to Bitcoin price action. By selecting a solid brokerage, conducting research, determining position sizing, executing informed trades and managing them properly – investors can gain exposure to this high growth software stock interconnected with the crypto space. Staying up to date on relevant news and adjusting holdings periodically is key to maximizing returns.
