This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

MicroStrategy Rides 'Intelligence' Wave

Software that can pluck useful information out of the ever-growing mountains of corporate data is moving to center stage. Currently, no provider of what insiders call "business intelligence" is hotter than MicroStrategy (MSTR).

A one-time basket case, MicroStrategy has outperformed its bigger rivals -- Cognos (COGN) and Business Objects (BOBJ) -- so far this year, appreciating by a solid 21%. Shares of the McLean Va.-based company, which traded as low as $35 last summer, rose 10 cents, or 0.2%, to $63.53 on Tuesday.

Late last month, MicroStrategy shares jumped 14% after the company reported fourth-quarter net income rose 74% to $17.5 million, or $1.02 per share, vs. a profit of $4.63 million, or 33 cents a share, in the year-ago period. Revenue rose to $51.7 million from $41.97 million, well over the $45.5 million consensus of analysts polled by Thomson First Call.

Driving the growth is a combination of robust demand for so-called business intelligence products, and the company's greatly improved financial position.

Once something of an afterthought, business intelligence sales by the six major public companies this year probably will total about $2.3 billion, compared with about $2 billion last year, according to analyst Rob Tholemeier of DRW Research. The total market is probably closer to $4 billion, and is shared by large companies like database giant Oracle (ORCL - Get Report), which also sells business intelligence products, and 15 or 20 small players, he said.

Off to a Strong Start
MicroStrategy rallies in 'business intelligence' software push
Source: Baseline

The market is getting more competitive. In July, Business Objects acquired privately held Crystal Decisions in a combined cash and stock deal worth $800 million.

Oracle, in fact, underestimated the demand for business intelligence products, and will move aggressively to grow its revenue in the space, Oracle President Charles Phillips said earlier this week in a conference call with Prudential investors.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs