This Growth Stock Could Be Worth a Trillion Dollars in the Next 5 Years
In today's video I talk about how Square (NYSE: SQ) could reach a trillion-dollar valuation. According to ARK Investment Management, digital wallets could be worth $4.6 trillion by 2025. I also talk about how Twitter could be another way Cash App gains more users and payment revenues. The use of artificial intelligence is going very under the radar, and that's an aspect of Square's business that people are not paying much attention to.
Digital wallets aren't new and have been growing for years now. But let's take a look at the leader in that space, China. The volume of mobile payments in China has grown more than 15 times in just five years, from roughly $2 trillion in 2015 to an estimated $36 trillion, nearly three times the size of China's GDP in 2020.
Digital wallet providers such as Cash App and Venmo can acquire customers for a fraction of what traditional banks pay. We've seen that Cash App's customer acquisition cost is around $5, but the potential value of these wallets can rise to $10,000-$20,000 if they become consumer financial dashboards where people view their insurance, shop, make payments, etc.
Source Fool.com
