#1 - Square (NYSE:SQ)
Square (NYSE: SQ) - There’s no question that Square caught lightning in a bottle. They recognized the opportunity that came from an increasing number of small proprietors who run their business off their smartphone, including processing their credit card transactions. Not only did they recognize this opportunity, but they also found an all-important way to monetize it. This gave the company a competitive advantage by allowing it to penetrate a niche that larger credit card payment processors such as First Data had largely ignored. As a result, savvy investors were quick to jump on Square’s initial public offering (IPO) in 2015 and drove the stock up to its present value, which is still 600% higher than the IPO despite the late year sell-off.
But Square faces problems on both the technical and fundamental fronts. On the technical side, its stock recently fell below its 200-day moving average and has failed to reclaim it. It also appears to be forming a head-and-shoulders pattern. Both of these indicators, while potentially short-lived, suggest the stock has further room to fall from its current value. What may be more concerning for investors is that the moat that they had built is under attack. PayPal recently announced plans to acquire Europe’s iZettle, which will give them access to the technology that will allow for credit card processing. And similar technologies are popping up and being adopted by small businesses as they upgrade their iPhone or Android device.
About Block
Square, Inc provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions.
Read More - Current Price
- $74.02
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 28 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $85.67 (15.7% Upside)
