Why MicroStrategy Shares Plunged
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What: Shares of MicroStrategy have plunged today by as much as 13% after the company reported first-quarter earnings.
So what: Revenue in the first quarter added up to $130.2 million, a 6% decline from a year ago. That translated into a loss from continuing operations of $5.2 million, or $0.46 per share. Those figures looked poor relative to consensus estimates, which were calling for $152.4 million in sales and $0.35 per share in profit.
Now what: The company reported a one-time gain of $57.4 million from the sale of Angel.com, but investors are more concerned with continuing operations. Product license revenues were down 24%, while support and services revenues were mostly flat. MicroStrategy has extended its share repurchase program through 2018, and still has $454 million remaining in the authorization.
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The article Why MicroStrategy Shares Plunged originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.