Is Square A Compelling Company?

Square is an intriguing company. It is one of several publicly traded companies that have legitimately embraced bitcoin and provided real value to users. It didn’t run an initial coin offering, it didn’t airdrop any tokens (except for the giveaways it does from time to time on social media), and it didn’t change its name to Square blockchain in the crypto boom years of 2017.

Instead, Square watched the market, tested bitcoin trading on a small scale in the last few months of 2017 and rolled its bitcoin trading feature within its Square Cash mobile application.

The fintech firm was founded ten years ago by Jack Dorsey and Jim McKelvey.

The company went public around six years after its founding to continued overall success, starting at a price point of $12.00 in 2015 and reaching as high as $95 last year before correcting to $57.00 per share.

There’s a lot to like about the company and its prospects, but bearish sentiment does exist as well.

Let’s find out about a few critical aspects of the company as it will likely be one exciting player within the fintech world and in the cryptocurrency community for some time to come.

Positive Catalysts For Square

Trade wars, a global slowdown, and other factors are not positive events but might have helped to tame the roaring Square stock, bringing it down to where it is today.

On a more micro level, Square sold off its Caviar division to DoorDash for a cool $410 million (it purchased Caviar for $90 million), and noted lower potential earnings going into the next quarter.

But we can see that Square is operating in a market that will continue to expand.

Caters to Small Business, Startups, Growing Firms, and Consumers

Square made its mark within business by providing a simple Square device. The device, when affixed to phones, would turn into a credit card reader, allowing businesses and organizations of all shapes and sizes to process payments via the increasingly used medium of credit cards.

The company progressed to providing a simple and intuitive point of sale devices to restaurants and fixed location business. It later opened up its Square Capital program, doubled with its Square Cash app for consumers, bitcoin trading, and boosts (or cashback) when using the square debit card.

Finally, it is said to be testing out free stock trading on a small scale and might roll out this substantial feature, keeping more users within its ecosystem.

Square is undoubtedly is a growth story stock.

Business

Small businesses and startups will continue to grow, providing Square with ample opportunities to be the best provider. The entity already provides a suite of business applications allowing businesses to asses their growth, conduct payroll, and borrow to grow and quickly expand their operations.

The firm aims to be there for the business every step of the way, providing for flexibility and accessibility in opening and running your small business ventures.

It is viable for the fraternity throwing a bake sale, for the freelancer who uses Square Cash to send and receive payments, and for the many emerging businesses that will continue to grow in number in the coming decade.

E-commerce

Square is entering the e-commerce market with simple solutions allowing merchants and consultants to create a free store online with payment processing conducted through Square.

Consumers

Cash App
The mobile application has amassed over 14 million users so far. Unique features include direct deposits into your Cash app account, a straightforward way to bank the unbanked.

Its foray into bitcoin trading and its new crypto division will also bolster future growth.

The bitcoin and cryptocurrency economy is still in its very early stages with only a small percentage of US citizens holding or trading bitcoin at any given time.

Finally, Square aims to provide most if not all aspects of a bank (deposits, send and receive payments, and cashback) within its easy to use and simple mobile application.

Overall

The company makes life easier for its business customers and consumer clientele, making it a company that significant potential if it can keep rolling out products that align with the long-term health of the company and improve the lives of its users.

Square Revenues and Profits

Square revenues are up by at least times over the course of several years, and gross profit has ticked up substantially year by year, indicating that the company is capturing value and minimizing its cash burn.

Revenues come from square payment processing via its card reader, POS systems, debit card swipes, lending, and bitcoin trading.

It’s important to note that the company is still young and has not turned a profit. Square has improved its financial position each year.

Credit card utilization is expected to trend up each year and provide further opportunities for the company.

Square is Playing Defense and Offense

As noted, prior, Square is in a sector that requires constant innovation to compete alongside the many different firms that already exist within the financial industry.

To combat a potential downturn in growth, Square has taken several actions to keep its growth secure. From testing out zero-commission trading to its recent foray into the bitcoin sector, Square seems to be leading the way on innovation and growth.

Product line growth, in addition to geographic growth will be critical drivers for the company.