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Square (SQ) is down today. What can you expect next?

Jessica Alter | 1:19 pm ET, 02 Aug 2019

Why did Square stock fall today?

The Square (SQ) stock declined sharply today following the company's second-quarter earnings release. Though its revenue and EPS came in ahead of estimates for the quarter, management's third-quarter forecast was below what analysts were expecting.

Why should you consider buying Square?

Here are the reasons to consider buying Square:

  • The company has built a powerful ecosystem, allowing sellers to accept payments through a range of media. Square does well not just with mid-market vendors, but also large ones.
  • The growth rate of Gross Payment Volume has been impressive, and the company is likely to stay on a growth path.
  • The CashApp product has been a great foray into the cryptocurrency market.

Why should you consider selling Square?

Here are the top three reasons to consider selling Square:

  • The company is still unprofitable, and profits remain at risk because of bad debt and fraud.
  • Stock growth will be highly dependent on the company's ability to innovate and beat competitors such as PayPal.
  • Square is also vulnerable to foreign exchange risk, since it operates in Canada, Australia and Japan.

How did the stock do last month?

Over the last month, Square (SQ) returned +16.78%.

What do analysts say about the stock?

Square (SQ) average analyst price target is 20.2% above its current price ($68.30). For the latest price and information on Square, please visit AskFinny and ask for "SQ", "SQ analysis" or "SQ news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Square (SQ) earnings: expect 36% revenue growth

Carla Olson | 2:10 am ET, 31 Jul 2019

Square (SQ) is announcing earnings on August 01 after the market closes. We combed through analyst estimates to understand what the company revenue and earnings are predicted to look like.

What should you expect from the upcoming earnings?

Revenue for the next quarter is expected to be $1.11B, which implies a 36% growth rate year-over-year.

Earnings per share are expected to come in at $0.16. If this materializes, EPS will grow 23% year-over-year.

How did the stock do last month?

Over the last month, Square (SQ) returned +16.78%.

What do analysts say about the stock?

Square (SQ) average analyst price target is 2% above its current price ($80.49).

For the latest price and information on Square, please visit AskFinny and ask for "SQ", "SQ analysis" or "SQ news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Square (SQ) earnings: more good things to come?

Royston Roche | 4:15 pm ET, 04 Nov 2018

Square, Inc. (SQ) shares are trading at $78, up 1.64%. The company is announcing its quarterly earnings results on Wednesday after the market close. What's driving Square stock price? What's SQ stock price forecast?

Square provides global payment and point-of-sale solutions. Recently, the stock has performed well: it generated a return of 115% in the past year. Square’s cash app has found tremendous acceptance from consumers.

Investors are showing interest in the company because of the strong revenue growth. On the other hand, few bearish investors worry about the sudden exit of its former CFO Sarah Friar. While the stock dropped 8% upon the announcement, it was later clarified that Friar left for a promotion to take a job as the CEO of the social network Nextdoor.  Square's last quarter’s revenue grew 60% to $385 million and earnings per share came at 13 cents compared to 7 cents for the same period last year.

Third-quarter results will be released after market close on November 07, 2018.  Analysts expect the company to earn 11 cents a share on revenue of $413.67 million. The company beat analysts estimate in the previous four quarters.              

What is the sentiment towards the SQ stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is neutral;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Square, Inc. (SQ) returned -24.86%.

Square, Inc. (SQ) forward P/E ratio is 94.83, and it’s high compared to its industry peers’ P/E ratios.

Square, Inc. (SQ) short share of float is 8.97%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Square, Inc. (SQ) average analyst price target ($70.78) is -0.48% below its current price ($71.12).

For the latest price and information on Square, Inc., please visit Finstead and search for "SQ price" or "SQ news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Square, Inc. (SQ): Should You Buy The Stock Now?

Carla Olson | 6:35 pm ET, 20 Mar 2018


A 6% rise in the stock price of Square (NYSE: SQ) caught investors' attention today. Square is trading at over $57 currently.

Square now has a $22B market cap. It’s very much driven by its prospect to become a leading payment solution for bitcoin payments. 

Optimists say Square's stock looks like Amazon’s in its early days.  This is because merchants are increasingly willing to accept bitcoin for store payments.

Square's price is now at its 52-week high.  The current price is almost 600%  higher than its 52-week low. 

However, the contrarians are saying this is purely a bubble. According to Finstead research, the consensus analyst price target is around $42, way below its current price.


Square’s valuation is the highest among its peers.

The Short Share of Float is higher than the average for the industry, so, a high volatility in the upcoming days can be expected.

One thing is certain: expect a lot of volatility in the upcoming weeks. 

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Square, Inc. (SQ) Buy or Sell Stock Guide

Updated at: 11:27 am ET, 12 Aug 2019

Are you looking for the analysis of Square, Inc. (SQ) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 9 reasons to buy and 7 reasons to sell SQ stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about SQ stock:

  • Is SQ a buy or a sell?
  • Should I sell or hold SQ stock today?
  • Is SQ a good buy / investment?
  • What are SQ analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy SQ stock:

1. Square differentiates itself by offering a comprehensive commerce ecosystem enabling sellers to combine software, hardware and payments services from several vendors. The company’s managed payment solutions allow sellers to accept payment through a range of media such as magnetic stripe (a swipe), Near Field Communication (NFC), EMV (Europay, MasterCard, and Visa), online through Square Invoices, Square Virtual Terminal, or the seller’s website. Square’s powerful point-of-sale software and services help sellers manage locations, orders, inventory, employees, and payroll.

2. Square’s rate of growth has been impressive since it started operations eight years back. Today, it serves millions of sellers across various industries such as food, retail and services, and geographies including the U.S., Japan, Australia and Canada. It processed $23.8 billion, $35.6 billion and $49.7 billion of Gross Payment Volume (GPV) in 2014, 2015 and 2016, respectively.

3. Square is making an effort to turn around its ailing fortunes. The company made its first European venture in March 2017 with the launch of its mobile payment services in the U.K. It became the fifth market where Square services are now available after the U.S., Australia, Canada and Japan.

4. The company is currently focusing on integration, automation, and platform. On the integration front, Square aims to make its services more cohesive. In February 2017, it rolled out Square for Retail, its first industry specific point of sale.

5. SQ stock price ($62.98) is close to the 52-week low ($60.48). Perhaps now is a good time to buy? See SQ price chart.

6. SQ quarterly revenue growth was 30.24%, higher than the industry and sector average revenue growth (5.27% and 5.06%, respectively). See SQ revenue growth chart.

7. SQ profitability is improving. The YoY profit margin change was 7.21percentage points. See SQ profitability chart.

8. SQ average analyst rating is Buy. See SQ analyst rating chart.

9. SQ average analyst price target ($81.65) is above its current price ($62.98). See SQ price target chart.

Now that you understand the bull case, let’s look at the reasons to sell SQ stock (i.e., the bear case):

1. Square has been incurring losses over the last few years. The company reported net loss of $154.1 million, $212 million and $171.6 million in 2014, 2015 and 2016, respectively. At the end of 2016, the company had an accumulated deficit of $779.2 million.

2. Growth depends and will continue to depend on the company’s ability to differentiate. Square is vulnerable to intense competition and changing technology, industry standards and seller and buyer needs. These call for frequent changes in product and service offerings, which in turn require heavy investments, putting pressure on its earning capacity.

3. The nature of its business makes Square vulnerable to foreign exchange risk. Apart from the U.S., the company operates in Canada, Australia and Japan and derives a significant part of its sales and earnings from there. Thus, appreciation or depreciation of the U.S. dollar versus foreign currencies could impact the company’s results.

4. Square will not pay dividends in the foreseeable future and wishes to channelize future earnings toward operation and business expansion. Consequently, investors will not receive return on their investments if price of the company’s common stock increases. Investors seeking cash dividends should avoid buying Square shares.

5. SQ Price/Book ratio is 31.03, and it’s high compared to its industry peers’ P/B ratios. See SQ forward Price/Book ratio chart.

6. SQ short share of float is 9.63%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See SQ short share of float chart.

7. SQ short interest (days to cover the shorts) ratio is 4.02. The stock garners more short interest than the average industry, sector or S&P 500 stock. See SQ short interest ratio chart.

Now let's look at the key statistics for SQ:

Metrics SQ
Price $62.90
Average Price Target / Upside $81.65 / 29.81%
Average Analyst Rating Buy
Industry Software - Application
Sector Technology
Number of Employees 3,349
Market Cap $34.76B
Forward P/E Ratio 108.6957
Price/Book Ratio 9.4356
PEG 3.0056
Revenue (TTM) $3.59B
YoY Quarterly Revenue Growth 30.23983315954119%
Profit Margin -1465.7381615598886%

What are your thoughts on SQ?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


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