It's up big today too, because all the tech players love it and the naz is up. I've always liked the stock too actually, but unfortunately I think they are gonna see a sharp sharp decline in revenues and unless I'm missing something here, none of the Wall Street guru's have caught it yet. Its easy. Square. ($SQ) Dorsey's baby. They make their money off of the sectors that are getting hit the hardest and may never come back. Salons, small bars and restaurants, tattoo shops... all that kind of stuff. Its their bread and butter. Not to mention they lend money to these places too. Many people lump SQ with Paypal. There's a huge difference, its not even close. SQ is predominantly a point of sale operation for small business's. They're gonna get hit. There's always risk, but I think it may be a good short. Earnings are May 2nd. Do with it what you will, but today would be a good day to set up a trade via options or otherwise if you tend to agree. Its near $63.
'sup Vanzy! Been a while... The big question now, for any short, is WILL THEY GET BAILED OUT. If Uncle Jerome airdrops a pallet full of ca$h into their headquarters, they'll either floor or go up up up. The markets are particularly irrational now because of the extraordinary external forces, interests, and agendas acting on everything.
Read the last release. They don't see a material effect due to covid19 per guidance. They don't habe international exposure.
I'm not sure what last release you're referring to, but a quick search of SEC filings turned up this little gem tucked away in filing from early March: Starting in March, the effects of COVID-19 began to impact the company’s growth, in particular due to a slowdown in gross processing volume (GPV) for its Seller ecosystem. While the beginning of March was relatively in-line with the company’s expectations, over the trailing ten-day period Seller GPV has declined by approximately 25% year over year, with greater declines in recent days. This has offset relative strength in the Cash App ecosystem, where the impact on gross profit growth has been less pronounced. As a result, Square is revising its growth expectations for the first quarter of 2020 and now expects to report total net revenue in the range of $1.30 to $1.34 billion and gross profit in the range of $515 to $525 million. This range assumes a further deceleration in overall GPV through the last week of March, beyond the levels we have seen in recent days. The company expects to report first quarter 2020 net income (loss) per share, Adjusted EBITDA, and Adjusted EPS that are below the most recent respective guidance ranges provided as of March 5, 2020 following our convertible debt issuance and earnings on February 26, 2020. Given the uncertainty around COVID-19, Square is withdrawing its full-year 2020 guidance and expects to provide a further update on its first quarter 2020 earnings call in May.
With luxury of 20/20 hindsight and all of March and most of April behind us.... I have a feeling Jack's update is not gonna be pretty. Oh... I read something else while I was digging that up.... Jack has earmarked $1 Billion of his own money for the Covid-19 fight. F'n A. Now that's class. I like that. Good job Dorsey.
Typically yes; but in this market climate, there's an extraordinary amount of uncertainty, so everyone is withdrawing guidance. "No guidance" meets with expectations.
True. Each company must be evaluated via its own merits and its niche and its balance sheet going forward. SQ unfortunately might be in the wrong niche. Balance sheet wise, they can still raise money for sure.