Why Square Stock Just Dropped 6%
Shares of point-of-sale credit card processor Square (NYSE: SQ) skidded 6% on the Nasdaq as of 12:25 p.m. EDT on Monday, just a few days -- but only two trading days -- after the company blew away analyst estimates in its fiscal Q1 2021 financial report.
Last Thursday evening, Square reported tremendous revenue growth -- up 267% year over year. It also reported its third straight profitable quarter, a quarter that was: (1) much better than its year-ago quarterly loss, (2) more than twice as profitable as analysts had predicted, and (3) secured the company's longest quarterly "winning" streak of profitable quarters ever.
That news sent Square stock up a respectable 4.2% in Friday trading, the day after the earnings news came out. Today, however, the company has already given back all those gains and is actually trading below what its stock cost before the earnings news was released.
Source Fool.com
