Is Square Stock a Buy?
The payments and financial services company Square (NYSE: SQ) saw a decline in its stock price in March, not unlike most of the market. Social distancing measures have hit many of its small business retail customers hard and put pressure on the company's gross payment volume (GPV) across several of its verticals. On March 24, the company reduced its net revenue projections by $20 million to $40 million for the first quarter. It also withdrew its yearly guidance.
But since revising its estimates, Square's stock has begun to rebound, with the share price rising from a low in March of $38 to now trading above $59 as of this writing. While the company could not provide much short-term guidance for the second quarter or the rest of the year, it did have some positive takeaways during a conference call on March 24. When you consider that the company had been performing very well before the virus, and that it also recently received approval from federal and state regulators to open a bank, prospects for the company's long-term outlook are very positive.
Image source: Square.
Source Fool.com
