HomeInvesting NewsIs SQ Stock a Good Investment? 

Is SQ Stock a Good Investment? 

Published on

When you think about SQ stock (NYSE:SQ), you immediately think of the cryptocurrency Bitcoin. A large purchase of Square stock (NYSE:SQ) is also being considered, as is a company makeover.

Amid growing concerns about a US recession, one issue is how resilient Square-parent, Block (SQ), would be to an economic slump compared to other digital payment providers. In addition, the price of Bitcoin has again fallen below a critical threshold of $20,000.

SQ Stock: Market Evaluation

Amrita Ahuja, Square’s chief financial officer, said at a Goldman Sachs financial conference in the middle of September that the company expects Cash App, excluding Afterpay, to have higher gross profit growth rates in the second half of 2022 than in the first half of the year.

Meanwhile, Block stock has fallen by 59% in 2022. SQ stock has underperformed against the S&P 500, which is down about 19%.

Square completed the purchase of Afterpay, an Australian consumer loan firm, on January 31. Its expansion has paused. Furthermore, fintech businesses such as Afterpay are subject to heightened regulation.

On September 14, Evercore ISI analyst David Togut downgraded Block stock to underperform.

“We are downgrading SQ stock (NYSE:SQ) due to potentially growing headwinds to its Seller and Afterpay businesses, which are being driven by increased competition, tightening credit, and an expected slowdown in macroeconomic growth, negatively pressuring our 2023 gross profit and EBITDA estimates,” Togut wrote in a report.

In a client note, Deutsche Bank analyst Bryan Keane noted that “the business has reduced experimental and less efficient spending, as well as revising its risk loss modeling and lowering the pace of recruiting.” “We think SQ stock (NYSE:SQ) is poised for meaningful margin increase in 2023 and 2024 as a result of scale and a new cost discipline emphasis.”

Square stock’s (NYSE:SQ) principal business is to create a two-sided digital payments ecosystem, with solutions targeting commercial sellers and consumer purchasers. Individuals may use the Square Cash App to manage their money, purchase stocks and bitcoin, and do other things.

The increase and monetization of Cash App users are critical to the prospects for SQ stock. During the coronavirus outbreak, cash app growth skyrocketed due to government economic

support. The negative opinion is that Cash App growth will decline when the US economy normalizes.

Featured Image-  Megapixl @ Selagin

Please See Disclaimer

Latest News

Recent Surge in Tesla Stock: Exactly What Caused It?

Tesla Stock (NASDAQ:TSLA) As of 11:30 a.m ET on Friday, Tesla stock was up 2.3%...

Here’s Why Carvana Stock Fell Quite So Much as 23.7% This Week

Carvana Stock (NYSE:CVNA) According to data provided by S&P Global Market Intelligence, Carvana stock fell...

Here’s Why Tellurian Stock Is Rising Again Today

Tellurian Stock (NYSEMKT:TELL) Tellurian stock was up 6.5% as of 11:06 p.m. ET today after...

Is It Time to Buy Chewy Stock?

Chewy Stock (NYSE:CHWY) Pet supplies are one of the few consumer goods that do well,...

More like this

2 Casino Stocks You Should Consider

With a recession on the horizon, investors must be more selective than ever. Analysts...

(Exxon Mobil Stock) Exxon Ceo Warns Biden Administration Against Restricting Fuel Exports

Exxon (Exxon Mobil Stock) opposes calls for oil corporations to reduce international exports and...

Apple Stock Loses $120 Billion Because of a Rare Downgrade

Apple stock just took a significant knock after it was once considered to be...

Meta Stock Tops Morningstar List of the Most Undervalued Stocks 

Morningstar compiled a list of the most undervalued stocks among those with a large...

Hd Stock up as Foundation to Contribute Up to $1 Million to Aid Communities Affected by Hurricane Ian

HD stock was trading at $280.23 as of 12:55 PM EDT. The Home Depot Foundation...

Making the Cut: Micron (Micron Stock)

Micron Technology Inc (Micron Stock) latest outlook brings expectations back to normal, although the...