Yesterday I talked about Twitter, whose CEO is Jack Dorsey, today I’m going to talk about another company of him — Square. I’ve been following the company since 2013 and I’ve traded the stocks several times last year and this year. I think it is a stock that has high growth potential as well as risk, and in the following, I will look at the company’s business model, financial data and the technical side of the stock price.
First, Square has been building the platforms for both sellers and individual consumers. It’s products Square, Weebly and Cash App has been form the ecosystem for small and medium businesses and every individual. One of its new product Cash App has even generated 27% company profit in 2019 Q4. Nowadays, Square is not just a payment system, but provide everything you need for business transactions, e-commerce, spending and investing.
As for the financial side, the company has turned profit since 2019 Q3, and analysts has been expecting better profit this Q1. As for cash flow, the company currently has $1098 million cash flow and would be good enough to go through even recessions.
As for the stock price, $ 63 are overvalued, but in the long-term if the company can utilize its large user base well and optimize the ecosystem, it would be more profitable. In my own opinion, I would wait when the price drop to ~$40 to buy in.
Reference
- Square Official Website: https://s21.q4cdn.com/114365585/files/doc_financials/2019/q4/Square-2019-10-K.pdf
2. Yahoo Finance
https://finance.yahoo.com/quote/SQ?p=SQ&.tsrc=fin-srch
3. Smart Stock Screener:
https://apps.apple.com/us/app/smart-stock-screener/id1501485233
