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Is Square a good investment right now?
This thread is going to be a deep dive into Square $SQ to look through why I see it as a good long term investment even though it has had CRAZY run in the past couple months
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This thread is going to be a deep dive into Square $SQ to look through why I see it as a good long term investment even though it has had CRAZY run in the past couple months
1/
For those unaware, Square is a financial/merchant service, mobile payment company led by no other than founder of @twitter, the one and only @jack. SQ markets software & hardware payments products & has expanded into small business services along w/ P2P payments w/ @CashApp
For those unaware, Square is a financial/merchant service, mobile payment company led by no other than founder of @twitter, the one and only @jack. SQ markets software & hardware payments products & has expanded into small business services along w/ P2P payments w/ @CashApp
2/
Some of Square& #39;s Key Stats from @ycharts :
- Market Cap: 82B
- Rev Growth YOY: 63.82%https://abs.twimg.com/emoji/v2/... draggable="false" alt="😀" title="Grinsendes Gesicht" aria-label="Emoji: Grinsendes Gesicht">
- PE: 299.52 P/B: 42.39 Foward PE est.: 328https://abs.twimg.com/emoji/v2/... draggable="false" alt="😅" title="Lächelndes Gesicht mit offenem Mund und Angstschweiß" aria-label="Emoji: Lächelndes Gesicht mit offenem Mund und Angstschweiß">
- Cash and short term investments (Qrtly): 4.4B
- Total liabilities (Qrtly): 5.8B
Some of Square& #39;s Key Stats from @ycharts :
- Market Cap: 82B
- Rev Growth YOY: 63.82%
- PE: 299.52 P/B: 42.39 Foward PE est.: 328
- Cash and short term investments (Qrtly): 4.4B
- Total liabilities (Qrtly): 5.8B
- PE: 299.52 P/B: 42.39 Foward PE est.: 328 https://abs.twimg.com/emoji/v2/... draggable="false" alt="😅" title="Lächelndes Gesicht mit offenem Mund und Angstschweiß" aria-label="Emoji: Lächelndes Gesicht mit offenem Mund und Angstschweiß"> - Cash and short term investments (Qrtly): 4.4B- Total liabilities (Qrtly): 5.8B" title="2/Some of Square& #39;s Key Stats from @ycharts :- Market Cap: 82B- Rev Growth YOY: 63.82% https://abs.twimg.com/emoji/v2/... draggable="false" alt="😀" title="Grinsendes Gesicht" aria-label="Emoji: Grinsendes Gesicht">- PE: 299.52 P/B: 42.39 Foward PE est.: 328 https://abs.twimg.com/emoji/v2/... draggable="false" alt="😅" title="Lächelndes Gesicht mit offenem Mund und Angstschweiß" aria-label="Emoji: Lächelndes Gesicht mit offenem Mund und Angstschweiß"> - Cash and short term investments (Qrtly): 4.4B- Total liabilities (Qrtly): 5.8B" class="img-responsive" style="max-width:100%;"/>
3/
Bearish Case:
- SQ& #39;s big rivals: First Data& #39;s Clover unit, PayPal, Visa, & Stripe to name a few
- COVID lockdown has shut down many small businesses that use SQ payment products
- $SQ up around 202% for the year (+350% premium to its March low (overvalued on many metrics)
Bearish Case:
- SQ& #39;s big rivals: First Data& #39;s Clover unit, PayPal, Visa, & Stripe to name a few
- COVID lockdown has shut down many small businesses that use SQ payment products
- $SQ up around 202% for the year (+350% premium to its March low (overvalued on many metrics)
4/
Bearish Case (cont.):
- You are NOT getting $SQ at a cheap price by no means right now
- Fiscal 2019 EPS: .80 (diluted) and analysts predict around a 30% decline in EPS for fiscal 2020
- Looking like a negative net income for 2020 (Q1: -105M & Q2: -11M)
Bearish Case (cont.):
- You are NOT getting $SQ at a cheap price by no means right now
- Fiscal 2019 EPS: .80 (diluted) and analysts predict around a 30% decline in EPS for fiscal 2020
- Looking like a negative net income for 2020 (Q1: -105M & Q2: -11M)
5/
Bull Case:
Square is disrupting the financial sector in many areas. It is a true one stop shop for small business vendors not just a payment product. Square basically takes care of everything top to bottom banking/payroll/loan/payment wise for vendors.
Bull Case:
Square is disrupting the financial sector in many areas. It is a true one stop shop for small business vendors not just a payment product. Square basically takes care of everything top to bottom banking/payroll/loan/payment wise for vendors.
6/
Bull Case (cont.):
What has really caught my eye is their expansion of their Cash App. Originally it was a P2P payment competitor to Venmo & Paypal but it has evolved to much much more.
Cash App allows to you to invest in securities along with crypto but there& #39;s more...
Bull Case (cont.):
What has really caught my eye is their expansion of their Cash App. Originally it was a P2P payment competitor to Venmo & Paypal but it has evolved to much much more.
Cash App allows to you to invest in securities along with crypto but there& #39;s more...
7/
Cash App (cont.):
- Cash App has a "Cash Card" (debit card w/ some nice discount perks)
- Cash App let& #39;s you buy securities and Bitcoin on its app
Look know further for a crypto bull then @APompliano and @jack with SQ& #39;s recent bitcoin investment https://www.theverge.com/2020/10/8/21507533/square-50-million-bitcoin-dorsey-cryptocurrency">https://www.theverge.com/2020/10/8...
Cash App (cont.):
- Cash App has a "Cash Card" (debit card w/ some nice discount perks)
- Cash App let& #39;s you buy securities and Bitcoin on its app
Look know further for a crypto bull then @APompliano and @jack with SQ& #39;s recent bitcoin investment https://www.theverge.com/2020/10/8/21507533/square-50-million-bitcoin-dorsey-cryptocurrency">https://www.theverge.com/2020/10/8...
8/
Developing before my eyes and what Jack / Square has in motion is the crossing of the SQ ecosystem into direct payrolls for employers using the Cash App.
Get paid instantly by your SQ using vendor through Cash App & being able to buy stocks/crypto w/ your paycheck is a dream
Developing before my eyes and what Jack / Square has in motion is the crossing of the SQ ecosystem into direct payrolls for employers using the Cash App.
Get paid instantly by your SQ using vendor through Cash App & being able to buy stocks/crypto w/ your paycheck is a dream
9/
Although the high valuation I am long $SQ. I see it disrupting the entire banking industry & credit card payment industry in one fatal blow.
The full crossover of Square & Cash App will be a scaling and monetization machine.
If you enjoyed this: https://rebelmarkets.substack.com/p/why-subscribe?r=71sq8&utm_campaign=post&utm_medium=web&utm_source=copy">https://rebelmarkets.substack.com/p/why-sub...
Although the high valuation I am long $SQ. I see it disrupting the entire banking industry & credit card payment industry in one fatal blow.
The full crossover of Square & Cash App will be a scaling and monetization machine.
If you enjoyed this: https://rebelmarkets.substack.com/p/why-subscribe?r=71sq8&utm_campaign=post&utm_medium=web&utm_source=copy">https://rebelmarkets.substack.com/p/why-sub...
