Square Story

Square Inc -- USA Stock  

USD 42.56  2.29  5.69%

Macroaxis News
By Nathan Young

As the financial system grows and evolves, the way we process payments changes with it. From cash, to checks, to debit cards, we have found more efficient ways to process payments. Popular names in this space include Visa, MasterCard, and PayPal. Square is a mobile payment system that allows people to accept payments via phones and other devices. However, that is not the reason the market is now watching Square closely. News has come out that the company is testing the ability to accept and process Bitcoin payments, which adds another notch to the viability of the cryptocurrency.

Business Services
Fama & French Classification
Square Stock Rose on Their Latest News That They Are Testing Bitcoin Payments

Starting with sales and revenue, in 2014 the company posted $850.19M in sales and that has increased to $1.7B at the end of 2016. EBITDA has continued to improve over the same time period, posting a negative $107.32M in 2014 to a negative $33.47M. Net income has slightly fallen from negative $154.09M in 2014 to negative $171.59M in 2016. That being said, the company is in a rapidly evolving sector and will continue to benefit from the changes.

Taking a peek at the stock chart, we can see that the stock has steadily increased over the year, indicating the market believes the company can perform into the future. With payment processing evolving, Square is in the right place. Earlier in November, investors were questioning what the next action would be to propel the company higher, and the Bitcoin testing is exactly what people wanted to see.  

There are two ways to play Square, and that is as a technology company or as a payment processing company. Certainly it isn’t the same as a Visa, but to have them both in your portfolio may detract from diversification and increase sector specific risks.   Before diving deep, you should gain a firm understanding of what Bitcoin is because it could be the new future of payment processing. Square may be on the right path, but use caution because if something were to happen with Bitcoin, you want to be sure the company can continue growing.   

Quarter over quarter in 2017, sales and revenue continue to grow along with a healthy EBITDA number. 2017 can prove to be a real healthy year for the company and that would play into the hands of stockholders and the company.  

Square seems to have the potential to keep pushing higher, the same way PayPal and Visa have done. Payment technology is always going to be changing as we stray away from cash and move to a digital payment system. If Square is not the company for you, take a look at competitors such as Visa as they already operate in a proven market. Not to say that Square is unproven, but they are diving into a Bitcoin world that is still far from being widely accepted.

Story Momentum

This story from Macroaxis reported on November 17, 2017 contributed to the next trading day price increase.The trading price change to the next closing price was 2.33% . The trading price change when the story was published to the current price is 4.55% .

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Net Income

Net Income Comparative Analysis
      Square Comparables 
Square is currently under evaluation in net income category among related companies. Net income is the profit of a company for the reporting period which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most watched numbers by money managers as well as individual investors.