|Square (stock symbol: SQ) completed its initial public offering on November 19, 2015 on the New York Stock Exchange where it raised gross proceeds of $243 million.|
Square is distinctively recognized by their ubiquitous credit card readers that plug directly into mobile phones and tablet devices. They started out as a payment processor platform helping to bridge the gap for non-cash payments at small and medium sized brick-and-mortar retailers so these shops could better compete with larger stores as consumer spending methods continue to shift away from cash.
They have expanded beyond their core non-cash payment origins to host a growing portfolio of banking and other services, which include e-commerce, developing a consumer cash transfer app (Square Cash), built a payroll management cloud-based software service, and launched a lending business.
In 2018, their revenue grew 50% to $3.3 billion. And they also have over $1 billion in cash on hand.
Their well-laid groundwork seems poised for tremendous growth in the coming years as their nascent businesses scale across multiple verticals. Interestingly, many of these verticals have very high margins, which could translate to significant profit growth in the long term.
In other words, Square seems poised to become a very important disruptive player in the financial services markets.
After reading and analyzing related stock market news about them, there are still some concerns, such as, Square's current price-to-sales ratio being presently at 7. Compare that to the S&P 500, which is presently at 2. Relative to other financial-tech firms, however, Square does appear to be financially in line with these others (e.g., Visa and Mastercard are both at 16 of sales).
This board has been created for the purpose of discussing Square’s stock price, future financial prospects, present day results, and the overall merits to its business model within the constantly evolving, very competitive landscape of the fintech industry.