rtmark
LearnBonds.com

Square Stock Price Plunged 40%: Here’s How to Play

Square (NYSE: SQ) stock price has been struggling to create the bullish trend over the past twelve months. The stock has lost 40% of the value after hitting an all-time high of $100 a share in September 2018. Its shares are currently trading around $60, slightly high from a 52-weeks low of $49 that it had hit at the beginning of this year.

SQ Square, Inc. weekly Stock Chart

Prior to the latest selloff, Square stock price jumped from $10 in 2016 to $100 in September 2018. Some analysts believe the substantial rally in its stock price has increased its valuations compared to the industry average. They believe the stock price needs some time and support from financial numbers to match valuations.

Joseph Fahmy, Managing Director of Zor Capital said, “The stock went from $10 to $100 in two years and now needs time to digest that huge move. I still like the company but it needs time to build a new technical base and let their earnings catch up to its valuation.”

Square Stock Price Plunged...

The company has reported solid financial results for the second quarter. Its Q2 revenue has beaten the consensus estimate by $5.33 million. The revenue increased by almost 44% year over year in the second quarter to $1.17 billion. The gross payment volume increased 25% Y/Y to $26.8 billion in Q2. It has also reported positive adjusted EBITDA of $105 million, up 54% from the past year period.

On the other hand, it ended the second quarter with cash, cash equivalents of $1.7 billion. This represents a growth of $80 million compared to the previous quarter.

The company expects to extend the momentum in the following two quarters. The company anticipates Q3 revenue in the range of $1.15 billion compared to revenue of $882 million in the year-ago period. The full-year revenue is expected to hit $4.4 billion. On the whole, Square’s stock price selloff is presenting a buying opportunity. This is because its financial numbers are offering complete support to share price performance.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.