Where Will Square Be in 10 Years?
Almost a decade ago, Marc Andreessen, the co-founder of Netscape who went on to start venture capital firm Andreessen Horowitz, wrote an essay in the Wall Street Journal, "Why Software Is Eating the World." His arguments seem prophetic today. When he said "software companies are poised to take over large swathes of the economy," he nailed it.
The dominance of technology is perhaps most obvious when we look at the stocks that are the most valuable. 15 years ago, the top 10 stocks included General Electric, Walmart, various banks and oil companies. There were only two tech companies in the top 10: Microsoft and Intel.
Now our economy is dominated by internet mega-caps. There is one sector that has not yet been devoured by tech companies: financial services. This situation is very likely to change over the next 10 years. Stock analysts have coined a term for the software and technology that might start eating the banks: fintech. And the software company with the largest appetite is Square (NYSE: SQ).
Source Fool.com
