Square Inc (NYSE: SQ) has been on a steady rise since late September. In yesterday’s trading session, the stock gained marginally by 0.74%, but it was a positive move in an overall bullish sentiment that has been building up over time.
Square’s bullish momentum in recent weeks has been driven by its positive quarterly results that were released on the 6th of November. The results for Q3 of 2019 indicated that, sales had increased by 44% as compared to the previous year to hit $1.27 billion. On top of that, the company’s EBITDA stood at $131 million, an increase of 85% from the past year. The company’s results were adjusted, but it will stop using this approach after an SEC letter warning against this practice. The company’s adjusted revenue numbers included revenue after transactions and bitcoin-related expenses. Besides the revenue numbers, the company announced that its seller ecosystem is on a growth trajectory, as seen in its year-over-year sales growth of 27%.
However, the company continues to deal with increasing competition in the payments market. Company’s like Fiserv and many others are coming up and taking up a share of the market. When announcing its Q3 results, Square was cognizant of this fact, and announced that, it projected its sales and marketing costs to increase by 48% in the year. This means that in the future, competition could eat into the company’s margins.
Nonetheless, Square has indicated that, it has lots of potential in the business-to-customer side of things. In the last quarter, the company’s growth was mainly driven by its Cash App platform. Revenues from Cash App grew by 115% year-over-year to stand at $123 million.
These growth numbers are reflected in the company’s charts as shown below. Square has been forming higher lowers an indicator that the uptrend is strong and gaining momentum.
About Square Inc
Square Inc is an American payments services provider. The company has its headquarters in San Francisco, California.