Can Square Keep Going After Last Week's 12% Pop?
We may never know if Huey Lewis was right about being hip to be square, but it's certainly been hip to be a Square (NYSE: SQ) shareholder these days. Shares of the high-tech transactions enabler hit another all-time high on Friday, soaring 11.85% on the week following chatter that PayPal Holdings (NASDAQ: PYPL) should acquire it.
The talk isn't really a rumor. It's more along the lines of wishful thinking from Loop Capital analyst Joseph Vafi, who put out a bullish note last week, suggesting that the two pair up. The logic is certainly sound. PayPal is trying to keep Venmo's ascent going, and the next step is to delve deeper into brick-and-mortar retailers. Square is already there, as its tablet and smartphone card readers are already being used by many small- and mid-sized merchants are already using its tablet and smartphone card readers.
Source: Fool.com