Replies to post #12764 on Keeping It Simple

[eastunder]

SQ

Susquehanna Adjusts Block's Price Target to $275 From $300, Keeps Positive Rating

[eastunder]

SQ/Afterpay expected to close feb 1

(5 day 132.33)



: Jan 12 (Reuters) - Australian buy now, pay later firm Afterpay Ltd (APT.AX) said on Wednesday its $29 billion buyout by payments firm Block Inc (SQ.N), previously known as Square Inc, has received approval from the Bank of Spain, making the deal fully unconditional.

With this approval, the companies can now implement the deal, which would be Block's biggest to date and the largest buyout ever of an Australian firm.

Afterpay said the deal is likely to close on Feb. 1. Its shareholders had in December overwhelmingly voted in support of the deal - 99.79% of the proxy votes were cast in favor. Block investors had approved the deal in early November.

[eastunder]

Is SQ Stock A Buy Amid Rebranding, Afterpay Deal, Bitcoin Fall And New Apple App?

https://www.investors.com/news/technology/sq-stock-buy-now/?src=A00220

REINHARDT KRAUSE09:01 AM ET 02/11/2022

When you think of SQ stock, both the coronavirus pandemic and cryptocurrency Bitcoin quickly come to mind. Now there's a big acquisition to mull for Square stock, not to mention a corporate rebranding.

What's more, Apple (AAPL) on Feb. 8 said it's rolling out a new iPhone app. The new app will turn iPhones into a point-of-sale terminal. The service will allow merchants to accept contactless credit or debit cards.

Square on Dec. 1 changed its name to Block (SQ), while retaining the ticker SQ. The company retains the Square brand for merchants that use its point-of-sale technology and services.

In part, the move reflects the company's commitment to blockchain technology, which underpins cryptocurrency. As of the market open on Feb. 11, SQ stock has dropped 47% since the rebranding.

Block reports fourth-quarter earnings on Feb. 24. It may update expected merger synergies with Afterpay.

Heading into its fourth-quarter earnings report, Susquehanna analyst James Friedman lowered his price target on Block stock.

"We now expect Cash App year-over-year growth to slow from 68% in 2021 to 18% in 2022, landing Cash App gross profit at $2.42 billion for the year," he said in a recent report.

Square and Twitter (TWTR) had the same chief executive in Jack Dorsey. But Dorsey resigned as Twitter CEO on Nov. 29, ending the CEO-sharing arrangement.

Afterpay Acquisition Falls In Value
Under Dorsey, Square has embraced cryptocurrency Bitcoin. One view is that Bitcoin is a customer acquisition tool for SQ stock.

Square on Jan. 31 closed the acquisition of Australia-based consumer lending startup Afterpay. Announced on Aug. 1, the deal was originally valued at $29 billion. With the big drop in Block stock, the deal was valued at less than $15 billion at closing.

Afterpay competes in the emerging "buy now, pay later" market that encroaches on credit card networks.

Some investors questioned whether Square needed to buy a BNPL company as opposed to building up its own capabilities or partnering. Competition is heating up in the buy now, pay later market.

Square stock is down about 32% in 2022. Meanwhile, the price of Bitcoin has retreated 35% to near $43,800 since peaking above $68,000 in November.

Block in January said it plans to build a system for bitcoin mining. In a tweet on July 15, Dorsey said the company will create a new business line to help developers build financial services products focused on Bitcoin.

Square in November said the Cash App will support "Taproot." It's a software upgrade to the Bitcoin blockchain that is intended to make the network more secure, flexible and scalable.

Cash App users will be able to send Bitcoin to Taproot-enabled wallets.

Square stock surged in 2020 during the coronavirus outbreak as investors focused on the growth of its consumer Cash App. They shrugged off worries over Square stock exposure to small businesses and restaurants that might close because of the coronavirus pandemic.

Square has closed the acquisition of a majority stake in Jay-Z's Tidal music streaming service for $297 million in cash and stock.

Block Stock: Investments Hiked In 2021
With multiple products, SQ stock faces stiff competition in both consumer financial apps and the small business market. Analysts expect Square's rivalry with PayPal Holdings (PYPL) to heat up in 2021 as they improve digital wallets.

Other rivals include First Data's (FDC) Clover unit, Shopify (SHOP), merchant acquirers, and well-funded startup Stripe.

Square disclosed a new $170 million investment in Bitcoin in early 2021 on top of its $50 million purchase in October 2020. The company reports Bitcoin holdings as unrealized gains on investments, and they will be excluded from adjusted earnings, analysts say.

The company also is interested in developing a Bitcoin hardware wallet.

SQ stock had 40 million Cash App monthly active users as of June 30, up from 36 million at the end of 2020.

Cash App users are able to buy, hold and sell Bitcoin. Square's adjusted revenues from Bitcoin are sales to app users, minus the cost of purchasing the digital currency.

But Square's Bitcoin business has gross profit margins of only around 2%, analysts say.

Square Stock: Payments Ecosystem
In its core business, Square aims to build a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers. The Square Cash App helps individuals manage money.

For merchants, Square makes credit-card readers that plug into mobile devices. Its Square Capital division provides loans to sellers. While Square retains only 10% of Square Capital loans on its balance sheet, there's still a risk of defaults.

Prior to the Covid-19 outbreak, SQ stock analysts were divided on whether Square revenue growth would reaccelerate with margin improvement following a period of elevated investments. The Square Cash App, a peer-to-peer money-transfer service, competes with PayPal's Venmo, Zelle and others.

Amid the coronavirus pandemic, Cash App emerged as a digital alternative to traditional banks. Consumers used the Cash App's direct-deposit feature to receive government stimulus payments, for example. But Cash App gross profit growth slowed over the summer, analysts say, as stimulus programs expired.

Square is testing a short-term borrowing feature for Cash App users. Square offers loans of $20 to $200. Cash App users are expected to pay pack the loans in four weeks, with interest.

Also, the Cash App provides a stock trading feature. Cash App offers a debit card through a deal with Marqeta.

The bearish view is that Cash App's momentum proves transitory with low customer retention after the coronavirus pandemic eases.

The Square Cash app, Square Capital and Instant Deposit all contribute to the company's subscription and services revenue. One key for Square is cross-selling more services to its existing pool of merchants, analysts say.

To broaden its consumer platform, Square plans to buy Credit Karma's tax business for $50 million in cash. It's a free service for consumers.

Block Stock: Moving Upmarket To Bigger Sellers
With roots in serving such micromerchants as food trucks and farm-stand vendors, Square has moved "upmarket," targeting larger businesses.

SQ stock ranks among the top 10 fintech companies. Bigger fintech companies include Visa (V), Mastercard (MA), PayPal, Fidelity National Information Services (FIS), Fiserv (FISV) and American Express (AXP).

In addition to selling credit-card readers, Square provides software for point-of-sale and back offices in order to manage inventory and other tasks.

Square recently focused on software products that can be used across many industries, such as invoicing, payroll and marketing. It also aims to integrate its payment tools into e-commerce platforms.

Instant Deposit Speeds Up Process
The company's Square Instant Deposit allows merchants to immediately receive payments instead of waiting a few days for settlement.

Meanwhile, Square Card is a business prepaid debit card issued in partnership with Sutton Bank to small business owners on the Square platform.

Square on March 2 said its Utah-based industrial bank has launched services to small businesses. Called Square Financial Services, the bank will offer loans and deposit accounts.

In trying to move upmarket, Square takes on Worldpay and Global Payments (GPN).

Some fintech companies are merging, giving them greater scale vs. Square.

The company recently sold Caviar, a food ordering and delivery service, to DoorDash for $410 million.

One key question as competition heats up is the outlook for the gross payment volume — total volume of sales in dollars generated by merchant customers — also known as GPV. It's a key financial metric for rivals like PayPal as well.

SQ Stock Fundamental Analysis
Square's third-quarter earnings came in at 37 cents per adjusted share, up from 34 cents in the year-earlier period. That missed estimates for 38 cents.

Gross profit increased 43% to $1.13 billion vs. estimates of $1.15 billion, the company said.

Net revenue jumped 27% to $3.84 billion. Analysts had predicted revenue of $4.39 billion. Excluding Bitcoin, revenue rose 45% to $2.03 billion.

GPV from merchant customers rose 43% to $45.4 billion vs. estimates of $45.6 billion.

Cash App's gross profits were $512 million, down 6% sequentially from the previous quarter. Cash App has 40 million monthly active users.

Block Stock Technical Analysis
After its disappointing initial public offering in November 2015, Square stock meandered. In June 2016, SQ stock still traded just above its initial public offering price of 9.

That soon changed. Square stock went on a big run starting in 2016. One analyst called Square the next FANG stock, joining the likes of Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Alphabet's (GOOGL) Google in stature.

Following its big run, Square stock fell more than 50% in late 2018 as many technology companies also crashed. Not many stocks roar back after a 50% correction.

It takes time for them to digest gains and set up for another extended surge into new highs.

But SQ stock clawed back in 2019. Then shares surged in 2020 as investors focused on the growth of its consumer Cash App.

But Block stock disappointed in 2021, especially in the back half of the year.


Square has wrestled with finding the right balance of revenue growth, investments and profitability.

Is Square Stock A Buy Right Now?
Square's Relative Strength Rating is only 7 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an 80 or better RS Rating.

The relative strength line, the blue line in the chart above, compares a stock's price performance with that of the S&P 500. A downward-trending RS line tells you the stock is underperforming the general market.

Block stock holds an IBD Composite Rating of 49 out of a best possible 99.

IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

SQ stock, meanwhile, has an Accumulation/Distribution Rating of E. The rating runs from a best-possible A+ to a worst-possible E. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A falling Accumulation/Distribution Rating would be a sign that institutional buyers are exiting.

As of Feb. 11, SQ stock trades well below an entry point of 283.29, according to IBD MarketSmith analysis. Square stock likely needs to form a new base to be actionable

[eastunder]

Is SQ Stock A Buy Amid Rebranding, Afterpay Deal, And Bitcoin Moves?

https://www.investors.com/news/technology/sq-stock-buy-now/?src=A00220

REINHARDT KRAUSE08:00 AM ET 02/25/2022

When you think of SQ stock, both the coronavirus pandemic and cryptocurrency Bitcoin quickly come to mind. Now there's a big acquisition to mull for Square stock, not to mention a corporate rebranding.

Square reported December-quarter earnings, net revenue and gross payment volume that topped analyst estimates, as Cash App growth slowed less than feared. SQ stock popped on the Q4 report and limited 2022 outlook.

What's more, Apple (AAPL) on Feb. 8 said it's rolling out a new iPhone app. The new app will turn iPhones into a point-of-sale terminal. The service will allow merchants to accept contactless credit or debit cards.

Square on Dec. 1 changed its name to Block (SQ), while retaining the ticker SQ. The company retains the Square brand for merchants that use its point-of-sale technology and services.

In part, the move reflects the company's commitment to blockchain technology, which underpins cryptocurrency. As of the market open on Feb. 25, SQ stock has dropped 46% since the rebranding.

Square and Twitter (TWTR) had the same chief executive in Jack Dorsey. But Dorsey resigned as Twitter CEO on Nov. 29, ending the CEO-sharing arrangement.

Under Dorsey, Square has embraced cryptocurrency Bitcoin. One view is that Bitcoin is a customer acquisition tool for SQ stock.

Square Stock: Afterpay Deal Falls In Value

Square on Jan. 31 closed the acquisition of Australia-based consumer lending startup Afterpay. Announced on Aug. 1, the deal was originally valued at $29 billion. With the big drop in Block stock, the deal was valued at less than $15 billion at closing.

Afterpay competes in the emerging "buy now, pay later" market that encroaches on credit card networks.

Some investors questioned whether Square needed to buy a BNPL company as opposed to building up its own capabilities or partnering. Competition is heating up in the buy now, pay later market.

Square stock is down about 35% in 2022. Meanwhile, the price of Bitcoin has retreated 42% to near $39,400 since peaking above $68,000 in November.

Block in January said it plans to build a system for bitcoin mining. In a tweet on July 15, Dorsey said the company will create a new business line to help developers build financial services products focused on Bitcoin.

Square in November said the Cash App will support "Taproot." It's a software upgrade to the Bitcoin blockchain that is intended to make the network more secure, flexible and scalable.

Cash App users will be able to send Bitcoin to Taproot-enabled wallets.

Square stock surged in 2020 during the coronavirus outbreak as investors focused on the growth of its consumer Cash App. They shrugged off worries over Square stock exposure to small businesses and restaurants that might close because of the coronavirus pandemic.

Square has closed the acquisition of a majority stake in Jay-Z's Tidal music streaming service for $297 million in cash and stock.

Block Stock: Investments Hiked In 2021

With multiple products, SQ stock faces stiff competition in both consumer financial apps and the small business market. Analysts expect Square's rivalry with PayPal Holdings (PYPL) to heat up in 2021 as they improve digital wallets.

Other rivals include First Data's (FDC) Clover unit, Shopify (SHOP), merchant acquirers, and well-funded startup Stripe.

Square disclosed a new $170 million investment in Bitcoin in early 2021 on top of its $50 million purchase in October 2020. The company reports Bitcoin holdings as unrealized gains on investments, and they will be excluded from adjusted earnings, analysts say.

The company also is interested in developing a Bitcoin hardware wallet.

SQ stock had 40 million Cash App monthly active users as of June 30, up from 36 million at the end of 2020.

Cash App users are able to buy, hold and sell Bitcoin. Square's adjusted revenues from Bitcoin are sales to app users, minus the cost of purchasing the digital currency.

But Square's Bitcoin business has gross profit margins of only around 2%, analysts say.

Square Stock: Payments Ecosystem

In its core business, Square aims to build a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers. The Square Cash App helps individuals manage money.

For merchants, Square makes credit-card readers that plug into mobile devices. Its Square Capital division provides loans to sellers. While Square retains only 10% of Square Capital loans on its balance sheet, there's still a risk of defaults.

Prior to the Covid-19 outbreak, SQ stock analysts were divided on whether Square revenue growth would reaccelerate with margin improvement following a period of elevated investments. The Square Cash App, a peer-to-peer money-transfer service, competes with PayPal's Venmo, Zelle and others.

Amid the coronavirus pandemic, Cash App emerged as a digital alternative to traditional banks. Consumers used the Cash App's direct-deposit feature to receive government stimulus payments, for example. But Cash App gross profit growth slowed over the summer, analysts say, as stimulus programs expired.

Square is testing a short-term borrowing feature for Cash App users. Square offers loans of $20 to $200. Cash App users are expected to pay pack the loans in four weeks, with interest.

Also, the Cash App provides a stock trading feature. Cash App offers a debit card through a deal with Marqeta.

The bearish view is that Cash App's momentum proves transitory with low customer retention after the coronavirus pandemic eases.

The Square Cash app, Square Capital and Instant Deposit all contribute to the company's subscription and services revenue. One key for Square is cross-selling more services to its existing pool of merchants, analysts say.

To broaden its consumer platform, Square plans to buy Credit Karma's tax business for $50 million in cash. It's a free service for consumers.

Block Stock: Moving Upmarket To Bigger Sellers

With roots in serving such micromerchants as food trucks and farm-stand vendors, Square has moved "upmarket," targeting larger businesses.

SQ stock ranks among the top 10 fintech companies. Bigger fintech companies include Visa (V), Mastercard (MA), PayPal, Fidelity National Information Services (FIS), Fiserv (FISV) and American Express (AXP).

In addition to selling credit-card readers, Square provides software for point-of-sale and back offices in order to manage inventory and other tasks.

Square recently focused on software products that can be used across many industries, such as invoicing, payroll and marketing. It also aims to integrate its payment tools into e-commerce platforms.

Instant Deposit Speeds Up Process

The company's Square Instant Deposit allows merchants to immediately receive payments instead of waiting a few days for settlement.

Meanwhile, Square Card is a business prepaid debit card issued in partnership with Sutton Bank to small business owners on the Square platform.

Square on March 2 said its Utah-based industrial bank has launched services to small businesses. Called Square Financial Services, the bank will offer loans and deposit accounts.

In trying to move upmarket, Square takes on Worldpay and Global Payments (GPN).

Some fintech companies are merging, giving them greater scale vs. Square.

The company recently sold Caviar, a food ordering and delivery service, to DoorDash for $410 million.

One key question as competition heats up is the outlook for the gross payment volume — total volume of sales in dollars generated by merchant customers — also known as GPV. It's a key financial metric for rivals like PayPal as well.

SQ Stock Fundamental Analysis

Square Q4 earnings came in at 27 cents per adjusted share, down 15% from 32 cents in the year-earlier period. Analysts had projected earnings of 23 cents a share.

Gross profit increased 47% to $1.18 billion vs. estimates of $1.16 billion, the company said.

Square said net revenue jumped 62% to $4.42 billion, boosted by Cash App transactions for digital cryptocurrency Bitcoin. Analysts had predicted revenue of $4.04 billion.

Adjusted revenue rose 54% to $1.4 billion, topping estimates of $1.34 billion.

Cash App had 44 million active monthly users at the end of December, up from 40 million in June, the company said. Cash App had gross profit of $518 million, up 37% year-over-year, topping estimates by 2%. Gross profit per monthly active grew 13% year-over-year to $47.

Gross payment volume from merchant customers rose 92% to $46.3 billion, in line with estimates.

Square said earnings before interest, taxes, depreciation and amortization, known as EBITDA, came in at $184 million vs. estimates of $143 million.

"Management gave some color around Afterpay, but left many details out in anticipation of their investor day in May," said RBC Capital analyst Daniel Perlman in a report.

At Keybanc Capital Markets, analyst Josh Beck commented: "Afterpay synergies were an earnings call focus, with early achievements including day-one online merchant/BNPL integration and 100,000 Cash App leads to Afterpay merchants with a compelling vision to unite the consumer/seller ecosystems across channels and countries."

Block Stock Technical Analysis

After its disappointing initial public offering in November 2015, Square stock meandered. In June 2016, SQ stock still traded just above its initial public offering price of 9.

That soon changed. Square stock went on a big run starting in 2016. One analyst called Square the next FANG stock, joining the likes of Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Alphabet's (GOOGL) Google in stature.

Following its big run, Square stock fell more than 50% in late 2018 as many technology companies also crashed. Not many stocks roar back after a 50% correction.

It takes time for them to digest gains and set up for another extended surge into new highs.

But SQ stock clawed back in 2019. Then shares surged in 2020 as investors focused on the growth of its consumer Cash App.

But Block stock disappointed in 2021, especially in the back half of the year.


Square has wrestled with finding the right balance of revenue growth, investments and profitability.

Is Square Stock A Buy Right Now?

Square's Relative Strength Rating is only 6 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an 80 or better RS Rating.

The relative strength line, the blue line in the chart above, compares a stock's price performance with that of the S&P 500. A downward-trending RS line tells you the stock is underperforming the general market.

Block stock holds an IBD Composite Rating of 42 out of a best possible 99.

IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

SQ stock, meanwhile, has an Accumulation/Distribution Rating of E. The rating runs from a best-possible A+ to a worst-possible E. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A falling Accumulation/Distribution Rating would be a sign that institutional buyers are exiting.

As of Feb. 25, SQ stock trades well below an entry point of 283.29, according to IBD MarketSmith analysis. Square stock likely needs to form a new base to be actionable.

[eastunder]

Is SQ Stock A Buy Amid Rebranding, Afterpay Deal, And Bitcoin Moves?

https://www.investors.com/news/technology/sq-stock-buy-now/?src=A00220

REINHARDT KRAUSE08:00 AM ET 02/25/2022

When you think of SQ stock, both the coronavirus pandemic and cryptocurrency Bitcoin quickly come to mind. Now there's a big acquisition to mull for Square stock, not to mention a corporate rebranding.

Square reported December-quarter earnings, net revenue and gross payment volume that topped analyst estimates, as Cash App growth slowed less than feared. SQ stock popped on the Q4 report and limited 2022 outlook.

What's more, Apple (AAPL) on Feb. 8 said it's rolling out a new iPhone app. The new app will turn iPhones into a point-of-sale terminal. The service will allow merchants to accept contactless credit or debit cards.

Square on Dec. 1 changed its name to Block (SQ), while retaining the ticker SQ. The company retains the Square brand for merchants that use its point-of-sale technology and services.

In part, the move reflects the company's commitment to blockchain technology, which underpins cryptocurrency. As of the market open on Feb. 25, SQ stock has dropped 46% since the rebranding.

Square and Twitter (TWTR) had the same chief executive in Jack Dorsey. But Dorsey resigned as Twitter CEO on Nov. 29, ending the CEO-sharing arrangement.

Under Dorsey, Square has embraced cryptocurrency Bitcoin. One view is that Bitcoin is a customer acquisition tool for SQ stock.

Square Stock: Afterpay Deal Falls In Value

Square on Jan. 31 closed the acquisition of Australia-based consumer lending startup Afterpay. Announced on Aug. 1, the deal was originally valued at $29 billion. With the big drop in Block stock, the deal was valued at less than $15 billion at closing.

Afterpay competes in the emerging "buy now, pay later" market that encroaches on credit card networks.

Some investors questioned whether Square needed to buy a BNPL company as opposed to building up its own capabilities or partnering. Competition is heating up in the buy now, pay later market.

Square stock is down about 35% in 2022. Meanwhile, the price of Bitcoin has retreated 42% to near $39,400 since peaking above $68,000 in November.

Block in January said it plans to build a system for bitcoin mining. In a tweet on July 15, Dorsey said the company will create a new business line to help developers build financial services products focused on Bitcoin.

Square in November said the Cash App will support "Taproot." It's a software upgrade to the Bitcoin blockchain that is intended to make the network more secure, flexible and scalable.

Cash App users will be able to send Bitcoin to Taproot-enabled wallets.

Square stock surged in 2020 during the coronavirus outbreak as investors focused on the growth of its consumer Cash App. They shrugged off worries over Square stock exposure to small businesses and restaurants that might close because of the coronavirus pandemic.

Square has closed the acquisition of a majority stake in Jay-Z's Tidal music streaming service for $297 million in cash and stock.

Block Stock: Investments Hiked In 2021

With multiple products, SQ stock faces stiff competition in both consumer financial apps and the small business market. Analysts expect Square's rivalry with PayPal Holdings (PYPL) to heat up in 2021 as they improve digital wallets.

Other rivals include First Data's (FDC) Clover unit, Shopify (SHOP), merchant acquirers, and well-funded startup Stripe.

Square disclosed a new $170 million investment in Bitcoin in early 2021 on top of its $50 million purchase in October 2020. The company reports Bitcoin holdings as unrealized gains on investments, and they will be excluded from adjusted earnings, analysts say.

The company also is interested in developing a Bitcoin hardware wallet.

SQ stock had 40 million Cash App monthly active users as of June 30, up from 36 million at the end of 2020.

Cash App users are able to buy, hold and sell Bitcoin. Square's adjusted revenues from Bitcoin are sales to app users, minus the cost of purchasing the digital currency.

But Square's Bitcoin business has gross profit margins of only around 2%, analysts say.

Square Stock: Payments Ecosystem

In its core business, Square aims to build a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers. The Square Cash App helps individuals manage money.

For merchants, Square makes credit-card readers that plug into mobile devices. Its Square Capital division provides loans to sellers. While Square retains only 10% of Square Capital loans on its balance sheet, there's still a risk of defaults.

Prior to the Covid-19 outbreak, SQ stock analysts were divided on whether Square revenue growth would reaccelerate with margin improvement following a period of elevated investments. The Square Cash App, a peer-to-peer money-transfer service, competes with PayPal's Venmo, Zelle and others.

Amid the coronavirus pandemic, Cash App emerged as a digital alternative to traditional banks. Consumers used the Cash App's direct-deposit feature to receive government stimulus payments, for example. But Cash App gross profit growth slowed over the summer, analysts say, as stimulus programs expired.

Square is testing a short-term borrowing feature for Cash App users. Square offers loans of $20 to $200. Cash App users are expected to pay pack the loans in four weeks, with interest.

Also, the Cash App provides a stock trading feature. Cash App offers a debit card through a deal with Marqeta.

The bearish view is that Cash App's momentum proves transitory with low customer retention after the coronavirus pandemic eases.

The Square Cash app, Square Capital and Instant Deposit all contribute to the company's subscription and services revenue. One key for Square is cross-selling more services to its existing pool of merchants, analysts say.

To broaden its consumer platform, Square plans to buy Credit Karma's tax business for $50 million in cash. It's a free service for consumers.

Block Stock: Moving Upmarket To Bigger Sellers

With roots in serving such micromerchants as food trucks and farm-stand vendors, Square has moved "upmarket," targeting larger businesses.

SQ stock ranks among the top 10 fintech companies. Bigger fintech companies include Visa (V), Mastercard (MA), PayPal, Fidelity National Information Services (FIS), Fiserv (FISV) and American Express (AXP).

In addition to selling credit-card readers, Square provides software for point-of-sale and back offices in order to manage inventory and other tasks.

Square recently focused on software products that can be used across many industries, such as invoicing, payroll and marketing. It also aims to integrate its payment tools into e-commerce platforms.

Instant Deposit Speeds Up Process

The company's Square Instant Deposit allows merchants to immediately receive payments instead of waiting a few days for settlement.

Meanwhile, Square Card is a business prepaid debit card issued in partnership with Sutton Bank to small business owners on the Square platform.

Square on March 2 said its Utah-based industrial bank has launched services to small businesses. Called Square Financial Services, the bank will offer loans and deposit accounts.

In trying to move upmarket, Square takes on Worldpay and Global Payments (GPN).

Some fintech companies are merging, giving them greater scale vs. Square.

The company recently sold Caviar, a food ordering and delivery service, to DoorDash for $410 million.

One key question as competition heats up is the outlook for the gross payment volume — total volume of sales in dollars generated by merchant customers — also known as GPV. It's a key financial metric for rivals like PayPal as well.

SQ Stock Fundamental Analysis

Square Q4 earnings came in at 27 cents per adjusted share, down 15% from 32 cents in the year-earlier period. Analysts had projected earnings of 23 cents a share.

Gross profit increased 47% to $1.18 billion vs. estimates of $1.16 billion, the company said.

Square said net revenue jumped 62% to $4.42 billion, boosted by Cash App transactions for digital cryptocurrency Bitcoin. Analysts had predicted revenue of $4.04 billion.

Adjusted revenue rose 54% to $1.4 billion, topping estimates of $1.34 billion.

Cash App had 44 million active monthly users at the end of December, up from 40 million in June, the company said. Cash App had gross profit of $518 million, up 37% year-over-year, topping estimates by 2%. Gross profit per monthly active grew 13% year-over-year to $47.

Gross payment volume from merchant customers rose 92% to $46.3 billion, in line with estimates.

Square said earnings before interest, taxes, depreciation and amortization, known as EBITDA, came in at $184 million vs. estimates of $143 million.

"Management gave some color around Afterpay, but left many details out in anticipation of their investor day in May," said RBC Capital analyst Daniel Perlman in a report.

At Keybanc Capital Markets, analyst Josh Beck commented: "Afterpay synergies were an earnings call focus, with early achievements including day-one online merchant/BNPL integration and 100,000 Cash App leads to Afterpay merchants with a compelling vision to unite the consumer/seller ecosystems across channels and countries."

Block Stock Technical Analysis

After its disappointing initial public offering in November 2015, Square stock meandered. In June 2016, SQ stock still traded just above its initial public offering price of 9.

That soon changed. Square stock went on a big run starting in 2016. One analyst called Square the next FANG stock, joining the likes of Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Alphabet's (GOOGL) Google in stature.

Following its big run, Square stock fell more than 50% in late 2018 as many technology companies also crashed. Not many stocks roar back after a 50% correction.

It takes time for them to digest gains and set up for another extended surge into new highs.

But SQ stock clawed back in 2019. Then shares surged in 2020 as investors focused on the growth of its consumer Cash App.

But Block stock disappointed in 2021, especially in the back half of the year.


Square has wrestled with finding the right balance of revenue growth, investments and profitability.

Is Square Stock A Buy Right Now?

Square's Relative Strength Rating is only 6 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an 80 or better RS Rating.

The relative strength line, the blue line in the chart above, compares a stock's price performance with that of the S&P 500. A downward-trending RS line tells you the stock is underperforming the general market.

Block stock holds an IBD Composite Rating of 42 out of a best possible 99.

IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

SQ stock, meanwhile, has an Accumulation/Distribution Rating of E. The rating runs from a best-possible A+ to a worst-possible E. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A falling Accumulation/Distribution Rating would be a sign that institutional buyers are exiting.

As of Feb. 25, SQ stock trades well below an entry point of 283.29, according to IBD MarketSmith analysis. Square stock likely needs to form a new base to be actionable.

[eastunder]

SQ Gap will be at 96.16

[eastunder]

SQ analysts after earnings from-to

SQ trading at 118 off an 87.72 low and a 96.16 Gap

Feb-25-22 Reiterated Truist Buy $250 - $220
Feb-25-22 Reiterated Susquehanna Posit $275 - $240
Feb-25-22 Reiterated Rosenblatt Buy $209 - $210
Feb-25-22 Reiterated Needham Buy $315 - $175
Feb-25-22 Reiterated Moffett Buy $250 - $200
Feb-25-22 Reiterated JP Morgan OW $200 - $192
Feb-25-22 Reiterated Jefferies Buy $200 -$155
Feb-25-22 Reiterated Deutsche Bank Buy $210 - $180
Feb-25-22 Reiterated Credit Suisse OP $230 - $190
Feb-25-22 Reiterated Cowen OP $238 - $188
Feb-25-22 Reiterated Canaccord Buy $310 - $210
Feb-25-22 Reiterated BMO Capital MP $172 - $159

[eastunder]

SQ 96.16 Filled 3/7

Still - no insider buying?

82.72 low (shoulda, woulda, coulda - idiot!)

[eastunder]

SQ

126

131.95 pivot watch

[eastunder]

Mizuho Securities Adjusts Block's Price Target to $190 From $180, Maintains Buy Rating

7:56 AM ET, 03/22/2022 - MT Newswires

07:56 AM EDT, 03/22/2022 (MT Newswires) -- Block (SQ) has an average rating of outperform and price targets ranging from $115 to $310, according to analysts polled by Capital IQ.

[eastunder]

SQ 141.79

[eastunder]

SQ cpps: 125.28 current low of day 118.92

Thats a pretty good intraday spread

50 day tag @ 118.02 (118.92 close enough?)

Open Gaps still keeping an eye on
Direction Date range
up Mar-16-2022 103.89 to 105.26

[eastunder]

SQ 91.00

78.14 LB 5/24

[eastunder]

SQ gap @ 66.04

64.94 c 20d #

[eastunder]

Block shares slip after crypto winter dampens quarterly results
Fri, August 5, 2022

https://finance.yahoo.com/news/block-shares-slip-crypto-winter-111403680.html

(Reuters) - Shares of Jack Dorsey-led Block Inc, a digital payments firm that has bet big on bitcoin, declined nearly 7% in premarket trading on Friday after the company reported a loss in quarterly results on waning interest in cryptocurrencies.

The San Francisco, California-based company saw nearly $3.5 billion wiped off its market value by 6:20 a.m. ET. The stock has fallen more than 44% this year.

Block on Thursday reported a loss of 36 cents per share in the second quarter, compared with a profit of 40 cents last year, and said it had slowed hiring and would cut its 2022 investment target by $250 million.

"The act of cutting spend suggests SQ is bracing for potentially weaker growth," JPMorgan analysts wrote in a note.

However, the brokerage maintained its "overweight" rating and $107 price target for the stock, citing underlying earnings potential from its buy now, pay-later business, which earned $150 million in gross profit in the quarter.

Investor enthusiasm over bitcoin and other digital currencies has ebbed this year, as red-hot inflation and the Federal Reserve's tightening of monetary policy have led to a selloff in risky assets.

That has hurt companies such as Block, which rode the bitcoin frenzy to post robust earnings last year.

Block's bitcoin gross profit - or what the company earns from the spread on buying and selling the cryptocurrency - plummeted 24% to $41 million in the quarter from $55 million a year earlier.

"Shares had rallied by almost 35% during the eight trading sessions prior to the print. The company likely would have needed to produce a nearly flawless report in order for that surge to continue," according to analysts at BTIG.

Jefferies and RBC Capital Markets, however, raised their price targets, saying Block's decision to cut costs would position it strongly to deal with a tough economic environment.

[eastunder]

Block reports 34% drop in Cash App bitcoin revenue, takes $36M bitcoin loss in Q2

David Hollerith·Senior Reporter
Thu, August 4, 2022
https://finance.yahoo.com/news/block-square-earnings-report-august-2022-211813296.html

Payments company Block (SQ) announced second quarter results Thursday that showed bitcoin revenue from its Cash App product fell 34% to $1.79 billion, with the company taking a $36 million charge on its bitcoin investments.

Gross profit in the quarter totaled $1.47 billion against Wall Street expectations for $1.46 billion, while adjusted earnings per share of $0.18 topped estimates for $0.16. Excluding bitcoin, total net revenue in the second quarter was $2.62 billion, up 34% year over year.

Cash App's Borrow feature reported more than 1 million active accounts as of the end of the quarter.

Shares of Block were down as much as 5% in after hours trade.

Compared to the previous quarter, gross profit from bitcoin fell from $43 million to $41 million as the price of bitcoin fell by 57% from $46,262 to below $20,000 per coin in the three months ended on June 30.

Block said the decline in its crypto business was “driven primarily by a decline in consumer demand and the price of bitcoin, related in part to broader uncertainty around crypto assets, which more than offset the benefit of volatility in the price of bitcoin during the quarter.”

"In future quarters, bitcoin revenue and gross profit may fluctuate as a result of changes in customer demand or the market price of bitcoin," the company added.

Block's $36 million impairment charge represents an unrealized loss reflecting bitcoin’s value at its lowest level over the quarter due to how digital assets are handled under GAAP accounting rules.

Under these rules, bitcoin's gain in value from the quarter's low to its end cannot be reported unless the asset is sold thus the impairment charge reflects bitcoin's lowest value during the previous quarter, not its Q2 end market value.

Earlier this week, for instance, Microstrategy (MSTR) reported a $917.8 million impairment on its bitcoin holdings,

As of June 30, 2022, Block measured the fair value of its bitcoin holdings at $160 million based on observable market prices, which is $47 million greater than the carrying value of the investment after impairment charges, but far below the $366 million fair value it recognized at the end of the last quarter.

[eastunder]

SQ wash up 9/30 on repo
cpps 70.18

rb2/s68.31

[eastunder]

Is SQ Stock A Buy Or Sell? Bulls Eye Margin Growth, Bears See Afterpay Risk

https://www.investors.com/news/technology/sq-stock-buy-now/?src=A00220

REINHARDT KRAUSE09:01 AM ET 09/22/2022
When you think of SQ stock, cryptocurrency Bitcoin quickly comes to mind. There's also a big acquisition to mull for Square stock as well as a corporate rebranding.

Amid rising fears of a U.S. recession, one question is how resistant Square-parent Block (SQ) will be to a business downturn versus other digital payment companies. Also, the price of Bitcoin has again dropped below a key level of $20,000.

Meanwhile, Block stock has retreated about 63% in 2022. SQ stock has under-performed versus the S&P 500, which is down nearly 21%.

Square on Jan. 31 closed the acquisition of Australia-based consumer lending startup Afterpay. Its growth has slowed. And, "buy now, pay later (BNPL) fintech companies like Afterpay face increased regulation.

At Mizuho Securities, analyst Dan Dolev downgraded Block stock on Sept. 22 to neutral.

"After years of rightfully being deemed the most innovative name in payments, we believe user fatigue, plateauing inflows, loss of the best-of-breed POS status, and BNPL mis-execution are blocking SQ's growth," Dolev said in a report.

"SQ still has enormous potential, but it is not being realized. Instead, BNPL estimates continue to come down and projects like Bitcoin — which accounts for 5% of gross profit — seem to disproportionately preoccupy management's attention," he added.

Square Stock: Earnings Mixed

Square reported June-quarter earnings and revenue that fell from a year earlier but beat estimates. Operating profit and gross payment volume missed views.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, came in above expectations.

"The company has pulled back on experimental and less efficient spend, along with adjusting its risk loss modelling and slowing the pace of hiring," Deutsche Bank analyst Bryan Keane said in a note to clients. "Due to scale and a new cost discipline focus, we believe SQ stock is positioning for material margin expansion in 2023 and 2024."

In its core business, Square stock aims to build a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers. The Square Cash App helps individuals manage money, buy stocks and cryptocurrency, and more.

Cash App user growth and monetization is key to the outlook for SQ stock. Cash App growth soared during the coronavirus pandemic amid government economic stimulus. The bearish view is that Cash App growth will slow as the U.S. economy normalizes.

Block Stock: New Corporate Branding

Square on Dec. 1 changed its name to Block, while retaining the ticker SQ. In part, the move reflected the company's commitment to blockchain technology, which underpins cryptocurrency. SQ stock has dropped 72% since the rebranding to Block.

Meanwhile, the price of Bitcoin stood at $19,240 on Sept. 22. In June, Bitcoin fell below $19,000. Crypto assets have been under pressure.

The price of Bitcoin has retreated 71% since peaking around $68,900 in November. For investors in Square stock, a key question is when the price of Bitcoin will bottom.

The company retains the Square brand for merchants that use its point-of-sale technology and services.

At an investor day in May, Chief Executive Jack Dorsey said Block has "an ecosystem of ecosystems" business model.

The strategy is designed to create a positive feedback loop among business units as the company expands, he said. But Square did not provide multi-year guidance on revenues and margins.

Square Stock: Cash App Growth Key

"Square delivered a confident, thoughtful and coherent message with a strategic focus," Susquehanna analyst James Friedman said in his note to clients. "SQ is focusing on integrating its Cash App and Square ecosystems (largely via Afterpay), adding services and cross-selling to Cash App customers and growing its adjacent other business lines."

At the Goldman Sachs conference in September, Square said the Cash App now has 47 million monthly active users, up slightly from 44 million at the end of 2021.

Some Cash App metrics were a bright spot when Square reported March-quarter earnings. The company reported earnings, revenue, operating profit and gross payment volume that missed analyst estimates, despite lowered expectations.

Square is diversifying on the merchant side. Merchants with less than $125,000 in annual payment volume represented only 34% of Square's gross payment volume mix in December, down from 57% in 2016, noted a UBS report.

Square and Twitter (TWTR) had the same CEO in Dorsey. But Dorsey resigned as Twitter CEO in late 2021, ending the executive-sharing arrangement.

Under Dorsey, Square embraced cryptocurrency Bitcoin. At RBC Capital, analyst Daniel Perlin says Bitcoin is more than a consumer acquisition tool for SQ stock.

Square Stock: Big Bet On Buy Now, Pay Later

In a recent note, Perlin said Block aims to build infrastructure that enables bitcoin-based commerce on its merchant platform.

"Crypto/bitcoin remains a small and volatile contributor today, but could develop into a more cohesive strategy and financial contributor longer-term," he wrote.

Block in 2021 said it plans to build a system for bitcoin mining. In addition, Square created a new business line to help developers build financial services products focused on Bitcoin.

Announced Aug. 1, the Afterpay deal was originally valued at $29 billion. With the big drop in Block stock, the deal was valued at less than $15 billion at closing.

Afterpay competes in the emerging "buy now, pay later" market that encroaches on credit card networks. Apple (AAPL) has emerged as a rival to Afterpay. Another rival of Afterpay is Affirm Holdings (AFRM).

Some investors questioned whether Block needed to buy a company in this sector as opposed to building up its own capabilities or partnering. Competition is heating up in the buy now, pay later market.

Block's 2022 guidance includes an expected $1 billion in Afterpay operating expenses. UBS analyst Rayna Kumar in a report said the "risk profile" of Afterpay has changed amid rising interest rates and the potential of increased regulation.

Square stock surged in 2020 during the coronavirus outbreak as investors focused on the growth of its consumer Cash App. They shrugged off worries over Square stock exposure to small businesses and restaurants that might close because of the coronavirus pandemic.

Square has closed the acquisition of a majority stake in Jay-Z's Tidal music streaming service for $297 million in cash and stock.

Block Stock: Competition Heats Up

With multiple products, SQ stock faces stiff competition in both consumer financial apps and the small business market. Analysts expect Square's rivalry with PayPal Holdings (PYPL) to heat up as they improve digital wallets.

What's more, Apple (AAPL) on Feb. 8 said it's rolling out a new iPhone app. The new app will turn iPhones into a point-of-sale terminal. The service will allow merchants to accept contactless credit or debit cards. And, Apple is moving into the buy now, pay later market.

Other rivals include First Data's (FDC) Clover unit, Shopify (SHOP), merchant acquirers, and well-funded startup Stripe.

Square disclosed a new $170 million investment in Bitcoin in early 2021 on top of its $50 million purchase in October 2020. The company reports Bitcoin holdings as unrealized gains on investments, and they will be excluded from adjusted earnings, analysts say.

The company also is interested in developing a Bitcoin hardware wallet.

Cash App users are able to buy, hold and sell Bitcoin. Square's adjusted revenues from Bitcoin are sales to app users, minus the cost of purchasing the digital currency.

But Square's Bitcoin business has gross profit margins of only around 2%, analysts say.

Square Stock: Payments Ecosystem

For merchants, Square makes credit-card readers that plug into mobile devices. Its Square Capital division provides loans to sellers. While Square retains only 10% of Square Capital loans on its balance sheet, there's still a risk of defaults.

Prior to the Covid-19 outbreak, SQ stock analysts were divided on whether Square revenue growth would reaccelerate with margin improvement following a period of elevated investments. The Square Cash App, a peer-to-peer money-transfer service, competes with PayPal's Venmo, Zelle and others.

Amid the coronavirus pandemic, Cash App emerged as a digital alternative to traditional banks. Consumers used the Cash App's direct-deposit feature to receive government stimulus payments, for example. But Cash App gross profit growth slowed over the summer, analysts say, as stimulus programs expired.

Square is testing a short-term borrowing feature for Cash App users. Square offers loans of $20 to $200. Cash App users are expected to pay pack the loans in four weeks, with interest.

Also, the Cash App provides a stock trading feature. Cash App offers a debit card through a deal with Marqeta.

The bearish view is that Cash App's momentum proves transitory with low customer retention after the coronavirus pandemic eases.

The Square Cash app, Square Capital and Instant Deposit all contribute to the company's subscription and services revenue. One key for Square is cross-selling more services to its existing pool of merchants, analysts say.

To broaden its consumer platform, Square plans to buy Credit Karma's tax business for $50 million in cash. It's a free service for consumers.

Block Stock: Moving Upmarket To Bigger Sellers

With roots in serving such micromerchants as food trucks and farm-stand vendors, Square has moved "upmarket," targeting larger businesses.

SQ stock ranks among the top 10 fintech companies. Bigger fintech companies include Visa (V), Mastercard (MA), PayPal, Fidelity National Information Services (FIS), Fiserv (FISV) and American Express (AXP).

In addition to selling credit-card readers, Square provides software for point-of-sale and back offices in order to manage inventory and other tasks.

Square recently focused on software products that can be used across many industries, such as invoicing, payroll and marketing. It also aims to integrate its payment tools into e-commerce platforms.

Block on May 18 said it has acquired privately held GoParrot, a digital ordering and marketing platform for restaurants.

Instant Deposit Speeds Up Process

The company's Square Instant Deposit allows merchants to immediately receive payments instead of waiting a few days for settlement.

Meanwhile, Square Card is a business prepaid debit card issued in partnership with Sutton Bank to small business owners on the Square platform.

Square on March 2 said its Utah-based industrial bank has launched services to small businesses. Called Square Financial Services, the bank will offer loans and deposit accounts.

In trying to move upmarket, Square takes on Worldpay and Global Payments (GPN).

Some fintech companies are merging, giving them greater scale vs. Square.

The company recently sold Caviar, a food ordering and delivery service, to DoorDash for $410 million.

One key question as competition heats up is the outlook for the gross payment volume — total volume of sales in dollars generated by merchant customers — also known as GPV. It's a key financial metric for rivals like PayPal as well.

SQ Stock Fundamental Analysis

In Q2, Square earnings were 18 cents per share on an adjusted basis, down 72% from the year-earlier period. Analysts had projected earnings of 16 cents a share.

Also, Square said revenue dropped 6% to $4.4 billion, as Cash App transactions for digital cryptocurrency Bitcoin fell. Analysts had predicted revenue of $4.33 billion.

Operating profit came in at $1.47 billion, up 29%, vs. estimates of $1.495 billion.

Gross payment volume from merchant customers rose 23% to $52.5 billion, vs. estimates of $53.187 billion.

In addition, Cash App gross profit rose 29% to $705 million. Excluding Afterpay, Cash App gross profit rose 15%.

The company said earnings before interest, taxes, depreciation and amortization, or EBITDA, came in at $187 million. Analysts had estimated $140 million.

Amid the Afterpay acquisition, Square's transaction and loan losses increased 225% year-over-year to $157 million. In its first full quarter since the merger, Afterpay contributed $150M in gross profit.

Assuming a stable macro environment, Block management said it expects Cash App and Square to sequentially grow gross profit each quarter throughout 2022.

Block Stock Technical Analysis

After its disappointing initial public offering in November 2015, Square stock meandered. In June 2016, SQ stock still traded just above its initial public offering price of 9.

That soon changed. Square stock went on a big run starting in 2016. One analyst called Square the next FANG stock, joining the likes of Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Alphabet's (GOOGL) Google in stature.

Following its big run, Square stock fell more than 50% in late 2018 as many technology companies also crashed. Not many stocks roar back after a 50% correction.

It takes time for them to digest gains and set up for another extended surge into new highs.

SQ stock clawed back in 2019. Then shares surged in 2020 as investors focused on the growth of its consumer Cash App.

But Block stock disappointed in 2021, especially in the back half of the year.

Square has wrestled with finding the right balance of revenue growth, investments and profitability.

Is Square Stock A Buy Or Sell Right Now?

Square's Relative Strength Rating is only 11 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an 80 or better RS Rating.

The relative strength line, the blue line in the chart above, compares a stock's price performance with that of the S&P 500. A downward-trending RS line tells you the stock is underperforming the general market.

Block stock holds an IBD Composite Rating of 21 out of a best possible 99.

IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

SQ stock, meanwhile, has an Accumulation/Distribution Rating of D-plus. The rating runs from a best-possible A+ to a worst-possible E. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A falling Accumulation/Distribution Rating would be a sign that institutional buyers are exiting.

As of Sept. 22, SQ stock has no valid entry point. Block stock has neared a 52-week low.

Square stock needs to form a new base to be actionable.

In addition, it's worth noting that Square stock uses a dual class structure of common stock, which gives insiders more voting power.

According to Macquarie: "Block has a dual class structure of common stock where Class B common stock have ten votes per share vs. Class A at one vote per share. As a result, Class B holders have a more voting power. As of December 2020, Class B stockholders (executive officers, employees, directors and their affiliates) held 62.8% of the voting power of Block."

[eastunder]

SQ +4.06
W 9/30

[eastunder]

10/18 gap SQ 56.77

[eastunder]

SQ Gap TGT 55.09

up Nov-04-2022 55.0999 to 57.66

[eastunder]

SQ CPPS end 2022 62.84


Baird Upgrades Block to Outperform From Neutral, Hikes Price Target to $78 From $62

[eastunder]

SQ

[eastunder]

SQ 71.78

[eastunder]

SQ cpps@ 80.40

day 1 solid above the 200 day - all wee's lining up in order: 5,9,14,20,50

new 76.19 gap / 5 day 74.95

[eastunder]

SQ - cpps @ 80.87

5 day crossed above 200 day on 1/20 (curr 81.32)
9 day crossed above 200 day on 1/23 (curr 79.57)
14 day crossed above 200 day on 1/24 ( curr 77.03)
20 day crossed above 200 day on 1/27 (curr @ 74.11)

4 of the five in line

Track 20 day for tag?

open gap 55.10 11/3/22

50 day is currently @ 67.95 (EMA is 69.98)

20, 50 & 200 days


20>200 cross 93.19 pivot

[eastunder]

SQ 71.18 & 69.97
200d sma and 50 day sma

pending Golden

[eastunder]

Credit Suisse Adjusts Block Price Target to $105 From $95, Maintains Outperform Rating
7:45 AM ET, 02/24/2023 - MT Newswires
07:45 AM EST, 02/24/2023 (MT Newswires) -- Block (SQ) has an average rating of Outperform and price targets ranging from $51 to $150, according to analysts polled by Capital IQ.
-------------------------------------------------------------------------------------------------------------

[eastunder]

--Wells Fargo Adjusts Price Target on Block to $108 From $105, Maintains Overweight Rating

[eastunder]

SQ price targets

Needham Adjusts Price Target on Block to $80 From $95, Maintains Buy Rating

Wolfe Research Adjusts Price Target on Block to $90 From $87, Maintains Outperform Rating

Wells Fargo Adjusts Price Target on Block to $105 From $108, Maintains Overweight Rating

Canaccord Genuity Adjusts Price Target on Block to $90 From $150, Maintains Buy Rating

KeyBanc Adjusts Price Target on Block to $75 From $85, Maintains Overweight Rating

RBC Cuts Price Target on Block to $90 From $95, Maintains Outperform Rating

[eastunder]

Block sees Q1 revenue rise despite short-seller report

https://finance.yahoo.com/video/block-sees-q1-revenue-rise-140046810.html

[eastunder]

SQ cpps @ 65.45

[eastunder]

KeyBanc Adjusts Block's Price Target to $85 From $75, Keeps Overweight Rating

[eastunder]

SQ CUP w/ Handle 8% depth 39% Length currently 118 days Pivot 80.60

[eastunder]

SQ CPPS @ 78.30

[eastunder]

SQ targets after earnings

--Mizuho Adjusts Price Target on Block to $90 From $85, Maintains Buy Rating

--BMO Capital Trims Block's Price Target to $87 From $88, Outperform Rating Kept

--Needham Adjusts Price Target on Block to $82 From $80, Keeps Buy Rating

--Morgan Stanley Trims Price Target on Block to $69 From $70, Maintains Equalweight Rating

[eastunder]

SQ 57.27 GAP 55.10

[eastunder]

SQ 59.12
9-5-23

[eastunder]

Is Square Stock A Buy As Analysts Eye Merchant Business Shake-Up?

https://www.investors.com/news/technology/sq-stock-buy-now/?src=A00220

REINHARDT KRAUSE12:30 PM ET 09/25/2023
Many technology stocks have outperformed in 2023 amid buzz over artificial intelligence technology. But investors have left Square parent Block (SQ) and SQ stock out of the party.

For digital payment processor Block, the growth trajectory of Square's consumer Cash App is one issue. There's also cryptocurrency Bitcoin and the Afterpay acquisition. Also, Square faces growing competition on many fronts.

Meanwhile, Square stock has retreated 28% so far in 2023. The Nasdaq composite has surged 27%, though it pulled back recently. Some technical ratings for SQ stock have weakened.

In its core businesses, Square stock aims to build a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers.

Block faces slowing growth for its consumer Cash App in 2024, UBS analyst Rayna Kuma said in a recent note to clients.

Also, some investors fear potential weakness in Square's point-of-sale business amid growing competitive pressures from Toast (TOST) in restaurants and Fiserv's (FISV) Clover unit generally.

Block replaced the head of its merchant Square business, Alyssa Henry, with Block founder Jack Dorsey. SQ stock fell Tuesday on the news. At Wolfe Research, analyst Darrin Peller focused on gross profits in a recent report. Gross margin is how much a company earns from revenue before subtracting operating expenses, taxes and interest.

Peller said the Square business needs to expand faster internationally, a move that could improve profitability.

SQ Stock: Marqeta Deal Renewed

Square and Marqeta (MQ) on Aug. 8 said they have renewed their transaction services agreement for Cash App and Afterpay.

In July, Bloomberg reported that Block is suing Visa (V) and Mastercard (MA) on antitrust grounds, alleging that both credit card networks are overcharging U.S. merchants through high cost interchange and merchant location fees.

Amid rising fears of a U.S. recession, one question is how resistant Square will be to a business downturn. The relatively low income levels of Square's customer base is one factor for investors to consider if the U.S. economy weakens, analysts say.

Square Stock: Cash App Growth

The Square Cash App helps individuals manage money, buy stocks and cryptocurrency, and more. Block aims to bridge the Cash App and merchant ecosystems with consumer financing services from Afterpay, acquired last year.

Short-seller Hindenburg Research in March issued a report claiming Square has inflated Cash App user metrics.

The Square Cash App, a peer-to-peer money-transfer service, competes with PayPal's Venmo, Zelle and others.

Square management has outlined a new long-term investment framework, which will put the company on the road to higher quality earnings under generally accepted accounting principles, often known as GAAP.

One bright spot: Square holds $5 billion on its balance sheet. In addition, Square stock uses a dual class structure of common stock, which gives insiders more voting power.

Block Stock: Tough Times For Crypto

In late 2021, Square changed its name to Block, while retaining the ticker SQ. In part, the move reflected the company's commitment to blockchain technology, which underpins cryptocurrency.

Meanwhile, Bitcoin has rallied during the banking crisis. But Bitcoin is still down significantly from its high near $68,900 in November 2021.

Block has aimed to build infrastructure that enables bitcoin-based commerce on its merchant platform. In addition, Square created a new business line to help developers build financial services products focused on Bitcoin.

SQ Stock: Cash App Growth One Key

Cash App user growth and monetization is key to the outlook for SQ stock. Cash App growth soared during the coronavirus pandemic amid government economic stimulus. The bearish view is that Cash App growth will slow as the U.S. economy normalizes.

The company retains the Square brand for merchants that use its point-of-sale technology and services.

Square on Jan. 31, 2022, closed the acquisition of Australia-based consumer lending startup Afterpay. Its growth has slowed. Further, fintech companies like Afterpay that are "buy now, pay later," or BNPL, face increased regulation.

Announced Aug. 1, 2021, the Afterpay deal was originally valued at $29 billion. With the big drop in Block stock, the deal was valued at less than $15 billion at closing.

In the emerging BNPL market where Afterpay competes, the players there are encroaching on credit card networks. Apple (AAPL) has emerged as a rival to Afterpay. Another rival of Afterpay is Affirm Holdings (AFRM).

Some investors questioned whether Block needed to buy a company in this sector as opposed to building up its own capabilities or partnering. Competition is heating up in the BNPL market.

Another questionable deal: Square acquired a majority stake in Jay-Z's Tidal music streaming service for $297 million in cash and stock.

Block Stock: Competition Heats Up

With multiple products, SQ stock faces stiff competition in both consumer financial apps and the small business market. Rivals include PayPal Holdings (PYPL), First Data's (FDC) Clover unit, Shopify (SHOP), merchant acquirers, and well-funded startup Stripe.

For merchants, Square makes credit-card readers that plug into mobile devices. Its Square Capital division provides loans to sellers.

During the coronavirus pandemic, Cash App emerged as a digital alternative to traditional banks. Consumers used the Cash App's direct-deposit feature to receive government stimulus payments, for example.

The bearish view is that Cash App's momentum proves transitory with low customer retention after the coronavirus pandemic.

With roots in serving such micromerchants as food trucks and farm-stand vendors, Square has moved "upmarket," targeting larger businesses.

In addition to selling credit-card readers, Square provides software for point-of-sale and back offices in order to manage inventory and other tasks.

Square recently focused on software products that can be used across many industries, such as invoicing, payroll and marketing. It also aims to integrate its payment tools into e-commerce platforms.

SQ Stock Fundamental Analysis

Square earnings and revenue for the second quarter topped views but gross payment volume from merchant customers missed. SQ stock sold off on management commentary regarding business trends.

June-quarter earnings rose 116% to 39 cents, topping estimates of 36 cents. Net revenue rose 26% to $5.53 billion versus estimates of $5.1 billion.

Analysts had projected earnings of 36 cents a share on revenue of $5.1 billion. Gross payment volume rose 40% to $54.2 billion, just below estimates of $54.5 billion. Gross profit for Cash App rose 37% to $968 million versus estimates of $935 million.


But overall gross profit growth slowed to 27%, or $1.87 billion, from 32% in the first quarter. Management forecast further third-quarter deceleration to 21% growth.

Cash App active monthly users reached 54 million in the June quarter, up slightly from 53 million in the March quarter.

Earnings before interest, taxes, depreciation and amortization, called EBITDA, jumped 105% to $384 million, handily beating estimates of $297 million.

Block said it expects $1.5 billion in adjusted EBITDA in 2023, including the $87 million beat in the June quarter. Analysts had called for full-year EBITDA of $1.36 billion.

Is Square Stock A Buy Or Sell Right Now?

SQ stock plunged about 61% last year.

Technical ratings have weakened. Square's Relative Strength Rating stands at 13 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an 80 or better RS Rating.

The relative strength line, the blue line in the chart above, compares a stock's price performance with that of the S&P 500. A downward-trending RS line tells you the stock is underperforming the general market.

Block stock holds an IBD Composite Rating of 51 out of a best possible 99.

SQ stock, meanwhile, has an Accumulation/Distribution Rating of E. The rating runs from a best-possible A+ to a worst-possible E. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading.

As of Sept. 25, SQ stock holds a cup base entry point of 89.97. Block stock trades well below the entry point.

[eastunder]

SQ CPPS 45 9/29/23
$40.55 open gap from 3/23/20

[eastunder]

SQ

10-3-23

41.61

Block, Inc (Nyse: SQ)

SEC, nasdaq, ShortSqueeze

Finviz, StockTA, Stoxline,