SQ Stock Alert: Square Afterpay Merger Announcement Sends Shares Lower


Square (NYSE:SQ) stock is on the move Thursday following an announcement about its merger with Afterpay.

Image of Square (SQ stock) logo on a mobile phone

Source: IgorGolovniov / Shutterstock.com

The big news today is Afterpay delaying a shareholder meeting. This meeting was going to have investors vote to approve the merger with Square. Originally, it was going to take place on Dec. 6, but now it’s unclear when that will happen.

The reason for the delay is Afterpay waiting on approval of the deal from the Bank of Spain. Currently, it expects a response from the institution sometime in mid-January. That means it will have to wait until at least then before it can hammer out a date for a shareholder meeting.

While it doesn’t appear there’s any danger of the deal falling apart, investors still aren’t happy about the delay. That makes sense as traders will want to see the benefits from the merger sooner rather than later, reports Reuters.

With that delay, it looks like Square will be operating under a new name when the merger finally closes. The company revealed yesterday that it plans to change its corporate name to Block. The Square brand will still remain and no changeups are happening as a result of the name change. SQ expects to adopt the new next week.

SQ stock is seeing major trading today following the merger delay news. This has more than 8 million shares moving as of this writing. That’s already above the company’s daily average trading volume of about 6.9 million shares.

SQ stock is down 3% as of Thursday morning.

Investors looking for more stock market news today will want to keep reading!

We’ve got all the latest coverage that traders need to know about for Thursday. That includes what to know about Omicron hitting stocks, what has C3.ai (NYSE:AI) shares falling, as well as the news sending Snowflake (NYSE:SNOW) stock higher. You can get all of that from the following links!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2021/12/sq-stock-alert-square-afterpay-merger-announcement-sends-shares-lower/.

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