Where Will Square Be in 1 Year?
Square (NYSE: SQ) has been one of the best-performing stocks through one of the worst economic periods in decades. Its stock price is up a whopping 199% year to date in a market where the S&P 500 is up approximately 7%. To say that the mobile payment specialist has surfed this year's tech wave would be selling it short.
There are a few good reasons why Square has performed so well. Its innovative products and its status at the forefront of the accelerating cashless trend have helped, as has its strategic position serving buyers and sellers alike. And the pandemic has definitely contributed to the stock's surge, as shutdowns and social distancing protocols have made mobile payments more essential than ever.
The stock has risen so high, so fast in a fragile economy that investors may be wondering if its valuation -- a ridiculously high price-to-earnings ratio of 292 -- is sustainable.
Source Fool.com
