Square Stock Breaks Out As Investment In Bitcoin Heats Up; Should You Buy This IBD 50 Stock?
Our stock is one of the top growth stocks.IBD 50 Stocks to Watch Square stock is the stock to choose for today. Square stock was founded in famously by Twitter(TWTR Jack Dorsey (CEO), provides point-of sale software and hardware solutions.
Square (SQFrom a 254.88, ), broke out.Cup-with-handleBuy point Wednesday as part of the 9% rally.
Square Stock is One to Watch
Square announced first quarter results on May 6 that surpassed analyst expectations. Square, a San Francisco-based company, highlighted an extraordinary quarter of growth.
The growth stock has been on an upbeat streak, claiming both its 200 and 50-day lines. In the meantime, the stock is clearing a cup-with-handle base. The shares broke out Wednesday and are still in a buy zone at 267.62.
Square has a nearly perfect IBD Composite Rating (98), along with a decent Relative Strength Rating (83), as well as double- or triple-digit growth on its top-line and bottom-lines on a year over year basis.
Square focuses on Bitcoin
The firm posted a Q1 sales increase of 266% to $5.05 billion. According to IBD data, EPS increased from a loss at 2 cents per share to a profit of 41 cents per share.
Square experienced a significant increase in revenue from subscription-based and services-based products. This segment saw a 88% increase in revenue to $558 million during the first quarter. Cash App, the company’s most popular app, saw strong growth, with $4.04 billion in revenue. This is an increase of 6666%.
Square stock saw significant growth in 2020, as investors focused on its Cash App. However, Square stock experienced significant growth in 2020 as investors focused on its consumer Cash App. The digital payment processor said that it expects slower growth due to the end of government stimulus payments to consumers.
Square announced a $170 million Bitcoin investment for Q1 on top of the $50 million October purchase. Square excludes Bitcoin holdings from adjusted earnings because they are not realized gains on investments.
Square CEO Dorsey announced in a July 15 tweet that the company would create a new business line to assist developers with building financial products that are focused on Bitcoin. Square is “building an open platform for developers with the sole purpose of making it simple to create noncustodial permissionless and decentralized financial services,” Dorsey tweeted.
Analysts believe that the company’s second quarter earnings will slow down slightly but continue to grow at a rapid pace. The company’s earnings are expected to increase 78% year-over-year to make a profit of 32c per share. Wall Street predicts that revenue will increase by 157% to $4.9 trillion.
Square will publish financial results for the quarter ending Aug. 5, after the close of the markets.
