Square's Facing Its First Real Test as a Business
Shares of Square (NYSE: SQ) plunged on Monday and have fallen steadily all week as social distancing practices and policies have put a damper on in-store shopping and dining out. Coronavirus could have an outsized effect on small businesses compared to larger national chains. That's bad news for Square, whose merchant base is heavily weighted toward small retailers and restaurants.
Square was founded in early 2009, just as the United States was exiting its last recession. The last 11 years have been great for small businesses in the country. And as a result, things have been great for Square. But the spread of coronavirus -- and the policies enacted to slow the spread -- will put a real damper on the growth of small businesses and Square's core operations.
Contactless payments at a Square Register. Image source: Square.
Source Fool.com
