Square Inc. (NYSE: SQ): Square Inc. Performance And A Look Ahead
From March 2020, to August now, Square has impressed investors. In March 2020, Square Inc. was priced at $38.09 at the stock exchange. Today, it is priced at $155.86, which shows that people have made use of the company’s app thoroughly in the last six months.
In fact, Square Inc. is one of the few companies (Read: top companies worth your investment in 2020) that has risen in the last six months, when the corona pandemic was at its peak.
Square Stock Is Secure And Long Term
Moreover, Square Inc. is a long term buy, which adds to its worth and appraise. Square was previously trading at $56.39. After a few months, it is trading at $150 per share and it really isn’t stopping. Investors are saying that Square can sky rocket to $200 this year so potential investors should be watchful.
Another sign as to why you should invest in Square Inc. is that Dan Loeb’s Third Point hedge fund picked up as many as 800,000 shares in the 3rd quarter of the year of the stock.
Resultantly, many hedge funds such as the JP Morgan increased their price target of the stock to $172, with an out performing rating.
Morgan has been very hopeful about the company’s stock, calling it a digital winner, both in the processor and payments market. Many others have also raised the price target of Square. as well. This includes analyst Kenneth Hill from Even Rosenblatt, who kept Square’s price target at $181 per share, from an initial target of $136 per share.
Square Is An Answer To A Cashless Society
What is surprising is that 1/3rd of the consumers need a cashless society. Square is proving to be an answer of that.
Because of Covid-19, people don’t even want to touch money. Global e-commerce is also hitting sky rocketing levels. As digital payments continue to grow, SQ stock will continue to see positivity. Square is an answer to a cashless society and most of its revenue comes from its Cash App processing hardware and software.
Large part of Square earnings is attributed to its Bitcoin business. Its EPS came in at 18 cents on its sales. It sales soared to 64% to $1.92 billion. Square has also had a decent profit margin. It achieved a gross profit of $597 million, which was up by 28% on a year over year basis. Furthermore, its Cash App profit rose by 167% (year over year basis) to now $281 million. Its Seller ecosystem also generated reliable gross profits to now $316 million.
Square is a good bet, therefore, and a company that is worthy of your trust and investment. It is a long term stock with a lot of growth potential and one that will continue to rise when business activity increase in the long term.
Stay tuned for more updates at Tech Unveiled.