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MicroStrategy's Potential S&P 500 Inclusion Tied to New Accounting Adoption

The software company could see a significant earnings boost and S&P 500 inclusion if it adopts new FASB accounting standards.

Overview

  • MicroStrategy may experience a $3 billion boost in earnings if it adopts new FASB ASU 2023-08 accounting standards early.
  • The company's decision could lead to its inclusion in the S&P 500, contingent on reporting positive earnings.
  • MicroStrategy has faced $2.27 billion in cumulative impairment losses under old FASB rules, impacting its financial reports.
  • Analysts are divided on whether MicroStrategy will pursue early adoption of the new standards.
  • The potential adoption could significantly alter MicroStrategy's earnings per share, with an estimated increase of over $300 per share.