Square Keeps Crushing Earnings. Why SQ Stock Will Power to $300 Next.

What Happened to the Square Stock Price Today?

  • Square (NYSE:SQ) stock rose slightly after the payments technology company reported strong first quarter numbers that easily breezed past expectations and included sustained robust growth trends.
  • Square Stock May Be Due for a Cooling Off Period

    Source: Jonathan Weiss / Shutterstock.com

  • Despite the rally, SQ stock is still about 20% off its recent highs.

Why It Happened

  • As has been the case for the past several years, Square’s earnings absolutely crushed estimates and were really, really good.
  • Amid a big rebound in consumer spending, Square’s GPV rose a very healthy 29% year-over-year in Q1, which paced an equally healthy 27% gain in transaction revenues.
  • Subscription revenue growth accelerated to 88%.
  • Cash App revenue growth ex Bitcoin accelerated to 139%.
  • Bitcoin revenues basically rose 10X year-over-year.
  • The whole growth narrative here is on fire. No wonder SQ stock popped after the print.

Does It Matter?

  • This blowout earnings report matters, because it strongly underscores that the recent weakness in SQ stock is completely unwarranted.
  • As we’ve been saying for months would be the case, Square is having a very strong year.
  • Not only is the physical seller business bouncing back, but the digital app business isn’t slowing down, either. It’s actually improving, too.
  • So, the whole Square growth narrative is accelerating, even after what was a record-setting 2020.
  • This continued acceleration in what is already a very robust growth trajectory will enable SQ stock to push significantly higher over the next few quarters.

SQ Stock Price Forecast

  • Following the earnings report, the consensus sell-side price target on SQ stock sits around $285.
  • We believe shares can and will make a run for that level within the next few months.
  • $300 look reachable by the end of 2021.

Square is living, breathing proof that innovation drives powerful long-term stock returns. The company started off as a physical point-of-sale payments processor designed to help small restaurants and retailers accept credit card payments. Then Square created complementary services like payroll management. Then Square launched loan services. And then the company built Cash App, dived into Bitcoin trading, expanded its e-commerce selling solutions, and much more.

Now, Square is an all-in-one, end-to-end commerce technology company for retailers of all shapes and sizes. This expansion from what Square was, to what Square is today, is due to innovation — and the result of this relentless innovation is a 10X rise in the SQ stock price.

So, if you’re looking for the next big 10X winner in the market, a good place to start looking is in a bucket of the most innovative companies in the world today.

Luckily, we’ve already created that bucket for you, in our exclusive venture-capital-style advisory service Innovation Investor — where we’ve constructed a portfolio of the most innovative stocks in the market with huge 10X upside potential.

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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this video.

By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the focus of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative next-generation mobility stocks, become a subscriber of Innovation Investor today.


Article printed from InvestorPlace Media, https://investorplace.com/hypergrowthinvesting/2021/05/square-keeps-crushing-earnings-why-sq-stock-will-power-to-300-next/.

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