Square to Continue Torrid Growth

cash app
Square’s popular Cash app

Square stock has nearly tripled YTD ($63 in January and $177 today) yet that hasn’t stopped Needham’s Mayank Tandon to raise his price target to $230. That’s a 30% increase if you are as bullish as he his.

Square has earned it’s growth with a 140% increase in YoY revenue to $3.03 billion in Q3 which is partly attributable to bitcoin exposure. Fueled by covid-19’s shift to touchless commerce as well as a rise in the influencer economy, Square’s popular Cash app grew revenue 212% YoY (Q3).

Our take:

We are hugely bullish on both Square’s Cash App and Paypal’s Venmo, which are next gen payment solutions for influencers – it’s how payments are often made for Instagram or TikTok collabs for example. Both give users exposure to bitcoin and both are incredibly popular solutions for general peer to peer payment. Covid and Stimulus checks may be “temporary” but are factors in the new few quarters, and long-term these solutions are going to only become more prevalent.

Disclaimer:

Author of this article holds a long-term position in both $SQ and $PYPL.

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