SQ - Square, Inc.

NYSE - Nasdaq Real Time Price. Currency in USD
62.99
-1.30 (-2.02%)
As of 10:28AM EDT. Market open.
Stock chart is not supported by your current browser
Previous Close64.29
Open63.82
Bid63.04 x 800
Ask63.11 x 800
Day's Range62.57 - 63.88
52 Week Range49.82 - 83.20
Volume1,302,155
Avg. Volume8,753,310
Market Cap26.905B
Beta (3Y Monthly)3.09
PE Ratio (TTM)N/A
EPS (TTM)-0.13
Earnings DateNov 6, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est77.97
Trade prices are not sourced from all markets
  • Wall Street’s #1 Analyst Sees Over 25% Upside for These 3 Tech Stocks
    TipRanks

    Wall Street’s #1 Analyst Sees Over 25% Upside for These 3 Tech Stocks

    What does it take to be the best? On Wall Street, it takes a sharp eye for stocks and a clear view of what makes a winning investment – and not every analyst has that. TipRanks finds those who do, however, by using natural language algorithms to sort through the records of more than 5,500 analysts. The results show that Cantor's Joseph Foresi is at the head of the pack, with an 86% success rate and a 23% yearly average return on his ratings.Foresi is a tech sector expert, with a proven record that has earned him the 1 spot in the TipRanks database. So, when he starts pointing out stocks with high potential for return, investors open up their ears. We’ve pulled up three of his recent reviews, to find out ones Foresi sees as compelling buys in the tech market.Square (SQ)The top competitor to PayPal in the online payment environment, Square offers online financial services and mobile payments for merchants and vendors. The company’s Square Reader allows any smartphone to read scan a credit card, while the Square Stand can turn Apple’s iPads into cash registers. The company is a great boon to small merchants and traveling vendors. The devices are money-saving, and are popular with small businesses.In addition to its line of clever transaction gadgets, Square also offers the Square Cash App, a head-to-head competitor with PayPal’s Venmo, the combination payment transfer service/social network. Square’s Cash App boasts more than 7 million active users, and even supports Bitcoin trading.Foresi focused on Cash App in his recent review of Square. He said, “We believe that Cash App is Square's entrance into a consumer money management platform. The Cash App can take advantage of the opportunities in people-to-people and debit usage growth. We estimate Cash App will represent incremental adjusted revenue growth of 10 percentage points on average over three years.”At the bottom line, Foresi says of Square and Cash App: “SQ Cash looks well positioned to continue taking market share in P2P through viral, grass roots marketing & its incentivized network effect. We are positive on SQ Cash's future monetization, as it has the largest offerings for a P2P platform, and SQ looks to continue to roll out new solutions.” He further notes that Cash App is the leader in P2P Bitcoin trading, and that there is high potential for the app to tap into SQ’s merchant network as a user base for Bitcoin trading.In line with his upbeat outlook on Cash App, and Square generally, Foresi rates SQ stock an Overweight along with $91 price target, indicating confidence in over 40% upside.Overall, SQ has drawn optimism mixed with caution when it comes to consensus opinion among sell-side analysts. Out of 24 analysts polled by TipRanks in the last 3 months, 11 are bullish on SQ stock, 9 remain sidelined, while 4 are bearish on the stock. With a slight return potential of 13%, the stock's consensus target price stands at $72.59, revealing apprehension baked into analysts' expectations. (See Square stock analysis on TipRanks)Virtusa (VRTU)Founded in the island nation of Sri Lanka, off the southeast coast of India, Virtusa is a leader in the subcontinent’s information tech sector. The company’s headquarters are in Massachusetts, and it has offices throughout the US, Europe, the Middle East, and South Asia. In 2018, Virtusa brought in more than $1 billion in total revenues. Virtusa earns those revenues through its core businesses: outsourcing of IT and systems implementation for large enterprises – particularly international banks – and software companies.Building a firm niche providing valued services to the banking industry has brought with it financial rewards. Virtusa’s billion-dollar 2018 revenue nearly matched the company’s $1.08 billion market cap, and Virtusa’s last-quarter earnings beat the forecast by 9%.Top analyst Foresi has been impressed by Virtusa’s performance, as well as by the company’s top brass. He attended a set of management meetings last month, and came away satisfied that VRTU has plenty of profit potential going forward. He wrote, after the talks with management, “VRTU had a strong FY19, growing 22%, but revised FY20 guidance down in the most recent quarter given weakness from a top banking client. Margins are expected to expand 60 bps in FY20 and 100 bps long term. The pipeline continues grow, especially in Digital, as more companies move past the experimental phase of cloud.”On the last point, that Virtusa’s future growth will continue to expand as clients increase their reliance of cloud software, Foresi elaborated: “Banks are shifting from the experimental phase of cloud to large transformations. Management notes wallet share is growing with clients and clients are attracted to Virtusa's scrum team transparency and ability to track the performance, a feature unique among outsourcing companies. Virtusa is able to attract clients due to a fundamental focus on engineering arbitrage & efficiency coupled with the traditional cost arbitrage benefits to clients.”Foresi acknowledges the potential weakness in Virtusa’s model – that “outsourcing companies typically face client concentration risk” – but expects Virtusa can find a balance among its client types. He adds that it is at heart an IT company, and IT services “remains a comparatively sticky business.” Foresi sees a 26% upside potential to VRTU, giving it a $45 price target.How does Foresi's bullish bet measure up against the word of the Street? Quite on point, it seems, considering TipRanks analytics exhibit VRTU as a Strong Buy. Out of 3 analysts polled in the last 3 months, all 3 are bullish on Virtusa stock. With a return potential of 43%, the stock’s consensus target price stands at $51. (See Virtusa stock analysis on TipRanks)Exela Technologies (XELA)Sometimes, a great stock buys comes at a bargain. XELA is a dollar stock, combining a bargain price with sky-high potential. Founded just two years ago, in Texas, the company has built its niche in the world of business process automation, offering services in cognitive automation, digital mail rooms, payment processing, and workflow automation to 3,500 customers in 50 countries. Exela Technologies has grown fast, but that growth has brought some questions.Chief among those questions are issues of fraud. The company’s major stockholder, a company called HandsOn Global Management, has faced recurring investigations for fraudulent activity, and has had to answer to the FBI. It’s a serious matter with potential to drive away investors – especially as Exela, like so many tech start-ups – has yet to post a positive quarterly EPS. While Exela’s management has not been implicated in the fraud investigations, that its major shareholder has does raise legitimate questions of credibility.Looking at the business end, however, pulls up a better picture. Exela has recently announced that it will enter a partnership with General Dynamics, on a contract with the US Department of Veterans Affairs. The contract, worth $900 million over the next 5 years, is part of the VA’s $2 billion Veterans Intake, Conversion, and Communication Services program. It’s the largest contract announcement in Exela’s short lifetime.Foresi says the company showed $29 million in free cash flow in the last quarter, an important sum as it allowed payment toward short-term debt. He added that Exela spent the last quarter focusing on its balance sheet and improving leverage. He wrote, “We believe management is looking at strategic alternatives. We expect the company to deliver slight revenue growth with margin expansion over time.”Regarding management’s outlook, Foresi said, “Management looks for cost savings in the long term from investments into optimization and restructuring charges… Digital Now growth continues due to a recent win with a large US bank. Management noted Q2 showed softness due to one-time non-cash items and expects 2H19 to pick up.”Bottom line: The Street’s best analyst put a $6 price target on a stock with a current trading price of just $1.02, suggesting a whopping 488% upside potential. Clearly, if Exela can avoid the potential pitfalls of disreputable shareholders and too much leverage, then the way is clear for excellent returns.Exela only has two analyst reviews in the past 3 months, but both give Buy ratings. The stock’s average price target is $4.50, giving it a high upside of 341%.

  • Square Stock Rose Due to UBS Coverage Initiation
    Market Realist

    Square Stock Rose Due to UBS Coverage Initiation

    Lately, Square (SQ) stock is becoming analysts’ favorite. On Tuesday, UBS analyst Eric Wasserstrom initiated coverage on the stock with a “buy” rating.

  • Fintech Stocks For Your Portfolio Of The Future
    Zacks

    Fintech Stocks For Your Portfolio Of The Future

    Fintech Stocks For Your Portfolio Of The Future

  • Do Directors Own Square, Inc. (NYSE:SQ) Shares?
    Simply Wall St.

    Do Directors Own Square, Inc. (NYSE:SQ) Shares?

    The big shareholder groups in Square, Inc. (NYSE:SQ) have power over the company. Generally speaking, as a company...

  • It Is Time to Be Cautious With Shopify Stock as Competition Heats Up
    InvestorPlace

    It Is Time to Be Cautious With Shopify Stock as Competition Heats Up

    On the surface, Canadian e-commerce company Shopify (NYSE:SHOP) has all the appearances of being a stock to buy. High flying SHOP stock is down 19% since the end of August, after a better-than-expected earnings beat pushed the stock up 28% over the course of that month.Source: Paul McKinnon / Shutterstock.com There are signs the fall correction may be over, with SHOP stringing together several days of gains, including 1.5% to close the day on Friday.However, it's also possible that the rough patch isn't over yet. In particular, the specter that its success is breeding competition is becoming a bigger concern.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Success for SHOPShopify has been very successful in becoming the e-commerce platform of choice for small businesses. The company's software is easy to use -- and it's affordable. Shopify has effectively removed many of the barriers to becoming an online retailer, encouraging individuals and small companies to take a crack at online selling. And the company has implemented measures to grow that business further. * 7 Beverage Stocks to Buy Now This includes going head-to-head in the brick-and-mortar retail space against Square (NYSE:SQ) with its own line of payment processing hardware. In September, Shopify announced the acquisition of 6 River Systems, a company focused on robotic warehouse fulfillment solutions. The move puts Shopify in a position to expand its fulfillment network in the U.S. and Canada. It also makes it more competitive against Amazon (NASDAQ:AMZN) in delivery of purchases. With global e-commerce sales pegged at $2.9 trillion in 2018 and growing, the potential for Shopify to expand is huge. After delivering first-quarter and Q2 earnings that smashed expectations, the stage was set for SHOP stock to surge. By the time it hit $406.99 on Aug. 27, Shopify stock was up nearly 194% on the year. Success Breeds CompetitionA number of issues were involved in the correction that hit SHOP over the past month and a half. Like many companies, Shopify has been impacted by the ongoing trade war between the U.S. and China. Tariffs that make products more expensive and threaten to cut consumer spending have the potential to impact online retailers, and that means Shopify's revenue could take a hit. A $603 million secondary share offering also led to a SHOP stock drop in September. The longer-term problem is that Shopify's success has not gone unnoticed. And that means the specter of competition. We saw the first signs of that in March, when Facebook's (NASDAQ:FB) Instagram announced Checkout, an online shopping tool that lets users buy products directly from the app. On Sept. 23, Microsoft (NASDAQ:MSFT) launched Dynamics 365 Commerce, new tools that helps retailers create online product pages. That's not a direct "build your own online shopping site" like Shopify -- yet -- but it's another step in the company's rumored move toward doing so. Then there is the sleeping elephant to Shopify's mouse: Amazon. Essential Retail makes the case that Amazon doesn't duplicate what Shopify is offering to small online retailers because it currently has no need to. As successful as Shopify has been, it's no real threat to Amazon at the moment. But should Shopify begin to scale up to the point where it does eat into the e-commerce giant's sales, Amazon would come at the Canadian company "hard and fast" with a competing solution.If that happened, the results for Shopify would not be pretty. The Bottom Line on Shopify StockAfter Friday's close, SHOP stock is at $329.26, but that's still up a whopping 157% year-to-date. Given that rapid rise and the challenges the company could face in coming months, Shopify stock may not be quite the bargain that it seems. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post It Is Time to Be Cautious With Shopify Stock as Competition Heats Up appeared first on InvestorPlace.

  • Don’t Let the Red Ink in Shopify Stock Tempt You
    InvestorPlace

    Don’t Let the Red Ink in Shopify Stock Tempt You

    Last month, online merchant place Shopify (NYSE:SHOP) disclosed two major announcements. First, the company acquired 6 River Systems, which utilizes cloud and robotics technology to make fulfillment solutions more efficient. Second, Shopify finally allowed its merchants to sell cannabidiol (CBD) products in legal jurisdictions. In theory, both announcements should bolster SHOP stock.Source: BalkansCat / Shutterstock.com Of course, the best theories don't always pan out in real life. Due to the funds needed to secure the 6 River acquisition, investors read between the lines. While Shopify stock is very much a growth name, the underlying company has so far only produced a string of annual net losses. Therefore, the acquisition makes the premium on SHOP even more stretched.However, one could make the argument that this dynamic represents a buying opportunity for Shopify stock. Our own David Moadel did exactly that, stating:InvestorPlace - Stock Market News, Stock Advice & Trading TipsI like to think differently than 99% of investors; if they're all selling, I'm looking for a buying opportunity. When it comes to SHOP stock, I now view it not only as an investment in e-commerce, but as a stake in the cloud and robotics niches -- both of which have a bright future, in my ever-so-humble opinion. * 10 Super Boring Stocks to Buy With Super Safe Returns I respect Moadel's logic. For one thing, SHOP stock has absolutely killed it in the markets. More fundamentally, though, Shopify is emblematic of the digitalization of commerce and its disruptive capacity. Like Square (NYSE:SQ) has done for payment processing, SHOP can level the playing field for small merchants.At the same time, I don't think you can ignore context. And in my view, the current (and coming) environment doesn't bode well for Shopify stock. A Reality Check for Shopify StockWhile Moadel and SHOP bulls see longer-term opportunities, I'm more focused on the nearer-term risks. Additionally, I perceive a hint of desperation with last month's news. Let me explain:On the surface, the 6 River acquisition makes perfect sense. As a force-multiplier for the fulfillment process, Shopify can help its merchants better serve their customers. With over 800,000 global merchants, that's a sizable consumer base. Again, in theory, this should lift Shopify stock.However, it's important to ask a follow-up question: how many of the company's merchants are generating enough business to justify the 6 River acquisition? When you break down the numbers, the average gross merchant volume for SHOP's merchants averages less than $60,000.But that's just the average. Clearly, most standalone businesses can't survive on GMV of $60,000. Logically, then, an investment in SHOP stock is an investment in a relatively few core clients; the rest of them will succumb to Shopify's churn rate, which they don't publish. Go figure.In my view, management knows exactly what they're doing. They realize that currently, investors are buying on perception rather than fundamentals. That's why I'm cynical about the CBD merchant approval. Naturally, this move will boost the merchant base - and possibly SHOP stock - but what's the success rate for CBD retailers?Undoubtedly, many will succeed. But many more will surely fail. As Dr. Andrew Kerklaan, president and founder of Dr. Kerklaan Therapeutics stated, "The days of bootstrapping a start-up in the cannabis industry are quickly coming to an end, if not already over."In other words, what matters most is capital, not wide-eyed entrepreneurs with a dream. Right now, Shopify has more of the latter than the former. This is why I'm not crazy about Shopify stock at the present valuation. SHOP Stock Faces Macro HeadwindsAs SHOP states in their blog page, the appeal for the merchant place is discovery. Shopify allows small businesses to find consumers that are looking for authentic products and excellent customer service. That might work in a bull market. But heading into a possible bearish phase, I'm not sure if this business model is conducive for SHOP stock.Recent data suggests a crack in consumer sentiment. Spending growth has slowed, leading some economic experts to raise a yellow flag.And you don't have to deep dive consumer data to get the chills. Despite a trade truce, a trade deal between the U.S. and China is still far off. Plus, geopolitical tensions, particularly in the Middle East, threaten to disrupt global economic sentiment. If these factors weren't enough, our own politics is fraught with mistrust and division.Simply put, it's not a great time for companies levered to discretionary retail. Additionally, if consumers are going to buy anything in a distressed environment, they'll do so cheaply. That means companies that have the scale to provide quality goods cheaper - we're talking Walmart (NYSE:WMT) and Target (NYSE:TGT), among many others - will leapfrog small businesses that specialize in niche products.Sure, authenticity and good service matters. But when push comes to shove, it's all about the Benjamins. Most of Shopify's merchants don't have the scale, which means you should let SHOP stock cool even further.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Dona€™t Let the Red Ink in Shopify Stock Tempt You appeared first on InvestorPlace.

  • Barrons.com

    Square Stock Rises After Analyst Predicts a Return to Growth

    Susquehanna’s James Friedman raised his rating for Square stock to Positive from Neutral. The payment processor has dropped more than 20% since its last earnings report.

  • Square Stock Has a Good Base for a Bounce
    InvestorPlace

    Square Stock Has a Good Base for a Bounce

    Not too long ago, Square (NYSE:SQ) was the up-and-comer of financial tech stocks and could do no wrong for a while. But that is no longer true. In fact, this year SQ stock is only up 10% while Visa (NYSE:V) and MasterCard (NASDAQ:MA) are up more than three times as much.Source: Shutterstock This year SQ stock hit heavy resistance at $83 per share and has failed at every potential breakout there. Although SQ is also lagging the S&P 500 by 40%, the opportunity from here is that there is more upside potential than downside risk.Finding bottoms in stocks is tricky. But identifying support zones that could act as a baseline for rallies is a lot easier. Square stock has fallen into such zones. Being around $50 per share has been pivotal to SQ for the last five years. So the bulls in it are on solid footing, which usually makes the case for more upside. There are no weak hands left to hold the stock after a long time of selling pressure.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Super Boring Stocks to Buy With Super Safe Returns Fundamentally, and even after this big correction, SQ stock is still not cheap. It still loses money and it sells at eight times sales. From that perspective it could have a lot more froth to shed. The bullish thesis for SQ has to include the assumption of strong growth. Otherwise it won't deserve its valuation premium and it would have to reprice lower. SQ Stock Has a Good Base for a BounceTechnically the short-term SQ charts show clear lines to trade. Short term, SQ has an opportunity just above $63 per share. This could invite momentum buyers to target $68. But from there, SQ might get a few more optimistic buyers to try and fill the giant gap from the last earnings report. It won't be easy, but if the overall markets rally for any reason then SQ will likely have a realistic chance to do it. But as with any good trade, there needs to be proper stops. In this case, SQ needs to sustain the high-low trend to retain the upside momentum.As with many investments, the whole globe is migrating all financial transaction to digital. The fin-tech sector stocks will have strong demand on their products and services for years to come. SQ, V, and MA will be amidst the winners. Their management teams have so far executed well on plans so I expect them to continue.The bitcoin craze is evidence that the world is ready for electronic financial transactions. Almost everyone I know uses one form of fintech or another. There is definitely room for all major entrants to prosper in it. SQ stock will be higher in the future if the stock markets in general don't crash.This brings up the important points of geopolitical risks that currently plague the headlines. The world seems like it's a mess. But the company P&L's don't indicate an imminent collapse. Politicians will eventually figure things out, but in the meantime they will put investors through a whirlwind of headlines. That's their job so they can justify their existence to their constituents. Politicians can rarely derail the whole globe on purpose especially when all central banks are dedicated to inflating economies.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Square Stock Has a Good Base for a Bounce appeared first on InvestorPlace.

  • Square Stock: Why Hedge Funds Are Adding Stakes
    Market Realist

    Square Stock: Why Hedge Funds Are Adding Stakes

    Lately, many hedge fund managers, institutional investors, and analysts are going gaga over Square stock due to its strong fundamentals and Cash App focus.

  • MarketWatch

    Square's stock gains after Susquehanna turns bullish

    Shares of Square Inc. rose 0.8% in premarket trading Friday, after Susquehanna analyst James Friedman turned bullish on the credit-card payment processing company, citing valuation and potential for future gross payment volume (GPV) growth. Friedman raised his rating to positive after being at neutral for the past 11 months. He reiterated his $77 stock price target, which is 24% above Thursday's closing price of $62.03. The stock had tumbled 22% over the past three months, compared with a 2.1% decline in the S&P 500 , amid concerns over valuation and decelerating margin expansion and GPV growth. "But we think the reinvestment that has muted the margin cadence may generate future GPV improvement and if so, we would expect the stock to follow," Friedman wrote in a note to clients. Square is slated to report third-quarter results on Nov. 6.

  • Hedge Funds Have Never Been This Bullish On Square, Inc. (SQ)
    Insider Monkey

    Hedge Funds Have Never Been This Bullish On Square, Inc. (SQ)

    After several tireless days we have finished crunching the numbers from nearly 750 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms' equity portfolios as of June 28. The results of that effort will be put on display in this article, as […]

  • When To Buy Growth Stocks: Cup Without Handle Can Pour The Gains
    Investor's Business Daily

    When To Buy Growth Stocks: Cup Without Handle Can Pour The Gains

    Think stock chart analysis in growth stocks is bewildering? Take comfort knowing only a few patterns are worth identifying. Learn the cup without handle.

  • ETFs to Invest in Mobile Payments and Drone Economy
    Zacks

    ETFs to Invest in Mobile Payments and Drone Economy

    These ETFs are posed to benefit from rapid growth of mobile payments and drone industries.

  • What do Hong Kong, Marijuana and the NBA have in common?
    Zacks

    What do Hong Kong, Marijuana and the NBA have in common?

    They were all subjects in the most recent episode of South Park, but also topics of conversation on Paper Traders!

  • Business Wire

    Square to Announce Third Quarter 2019 Results

    Square, Inc. will release financial results for the third quarter of 2019 on November 6, 2019, after market close. Square will also host a conference call and earnings webcast at 2:00 p.m.

  • Financial Times

    Stripe: parallel lines 

    Why does Stripe, the most valuable US fintech start-up, want to move into small business lending? Market signals suggest a growing chance of recession. Offering loans to risky borrowers should raise objections from investors, even as senators warn Stripe against involvement in Facebook’s cryptocurrency project, Libra.

  • Square (SQ) Dips More Than Broader Markets: What You Should Know
    Zacks

    Square (SQ) Dips More Than Broader Markets: What You Should Know

    In the latest trading session, Square (SQ) closed at $62.25, marking a -0.64% move from the previous day.

  • Barrons.com

    Square Stock Can Rebound Because Growth Will Improve Next Year, Analyst Says

    (SQ) stock can rally as its investments will drive better payment growth next year, according to KeyBanc Capital Markets. Square shares (ticker: SQ) have fallen about 23% since Aug. 1. At the time, the company reported gross payment volume slightly below expectations and gave disappointing sales guidance for its third quarter.

  • Benzinga

    KeyBanc Remains Bullish On Square On Potential Seller Investment

    Square Inc (NYSE: SQ ) is potentially undertaking seller investment initiatives, which could result in an improvement in gross present value (GPV) in the second half of 2020 and lead to stable GPV growth ...

  • Square to begin payment processing program for CBD sellers
    MarketWatch

    Square to begin payment processing program for CBD sellers

    Square Inc. announced Thursday that it was officially opening up payment-processing capabilities to CBD sellers, after initially offering this service as part of a beta program.

  • U.S. CBD Sellers Just Got Access To This Payment Tech Giant; Marijuana Stocks Mixed
    Investor's Business Daily

    U.S. CBD Sellers Just Got Access To This Payment Tech Giant; Marijuana Stocks Mixed

    Mobile payment provider Square said it will allow businesses in most U.S. states to sell products containing hemp-derived CBD on its platform.

  • Billionaire hedge fund manager Ray Dalio says his 'most valuable' principle is meditation
    Yahoo Finance

    Billionaire hedge fund manager Ray Dalio says his 'most valuable' principle is meditation

    Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, swears by transcendental meditation.

  • Square Needs to Build a Better Base Pattern to Move Me to Buy
    TheStreet.com

    Square Needs to Build a Better Base Pattern to Move Me to Buy

    One caller during Thursday night's ' Lightning Round' on Mad Money asked about Square, Inc. : "They lost a very good CFO, and even though it's a good company, it has not traded well since she left," noted Jim Cramer. In this daily bar chart of SQ, below, we can see that prices have been weak the past two months and the May lows were broken several times in September. The On-Balance-Volume (OBV) has only improved slightly the past two weeks so we cannot say with enthusiasm that buyers have come back in a real aggressive way.

  • Benzinga

    Cramer Weighs In On Yeti, Square And More

    On CNBC's "Mad Money Lightning Round," Jim Cramer said he wants to buy Yeti Holdings Inc (NYSE: YETI ). He is not worried about its balance sheet. Cramer wants to stay away from the commodity ...

  • Down 20% in a Month, Shopify Stock Isn’t Worth Buying Yet
    InvestorPlace

    Down 20% in a Month, Shopify Stock Isn’t Worth Buying Yet

    Shopify (NYSE:SHOP) stock is down 20% in the past month. SHOP stock slid from $389.70 at the open on Sept. 3 to $310.36 at the close on Oct. 2.Prior to that, SHOP stock had been rallying tremendously. SHOP stock nearly tripled in value from January to August. As a result, the shares reached a frothy valuation.As I wrote in my July column, "Short term, SHOP stock is a sell. A massive pullback could signal a buying opportunity to place a bet on SHOP's future prospects. But until then, investors should be cautious before chasing this growth story."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? I was a little early. The shares went up another 27% before starting their retreat back down to the $300 price level.While I believe SHOP remains overvalued, I can see the stock treading water or rallying higher.But here's why I'm on the sidelines with Shopify stock: Source: justplay1412 / Shutterstock.com Will SHOP's Fulfillment Push Move the Needle?SHOP is rapidly moving into fulfillment.The company believes that will help it compete more effectively with Amazon (NASDAQ:AMZN). But fulfillment is not a slam-dunk. The fulfillment industry is a low-margin business. Since it also has high startup costs, SHOP could lose big if this bet doesn't pay off. Considering the company has yet to generate a profit from its core business, it could be getting in over its head.In tandem with this fulfillment push, Shopify is acquiring 6 River Systems. 6 Rivers provides automation solutions for warehouse/fulfillment operations. The analyst community is positive on this deal. Canaccord's David Hynes believes the acquisition can jump-start SHOP's fulfillment strategy. He remains bullish on Shopify stock, setting a $385 price target on the name.Jeffries' Samad Samana believes another strength of the deal is that it brings two former Amazon execs into the fold. But Samana remains cautious, rating the stock a "hold." Piper Jaffray's Michael Olson is also positive on the acquisition, but remains "neutral" on Shopify stock, due to its valuation.Shopify's move into fulfillment has its pros and cons. But weighing catalysts against risks, I think SHOP stock remains highly overvalued. Let's take a closer look at the current valuation of Shopify stock. Even After Its Dip, Shopify Stock Remains OvervaluedEven compared to other growth stocks, SHOP is overvalued. Shopify's trailing enterprise value/sales (EV/Sales) ratio is 26.2. Here are the 12-month trailing EV/Sales ratios for some of Shopify's peers:Amazon: EV/Sales of 3.5Etsy (NASDAQ:ETSY): EV/Sales ratio of 8.9PayPal Holdings (NASDAQ:PYPL): EV/Sales ratio of 6.9Square (NYSE:SQ): EV/Sales ratio of 6.5Wix (NASDAQ:WIX): EV/Sales ratio of 8.1Perhaps comparing Shopify stock to AMZN, PYPL, and SQ is not an apples-to-apples contrast. But even among e-commerce platforms, Shopify's valuation is high. InvestorPlace columnist Mark Hake touched on this in a recent article. He pointed out that Shopify stock trades at a substantial premium to ETSY and WIX, even when comparing their forward sales.For the fiscal year that will end in December 2020, analysts, on average, estimate that Shopify's sales will be $2.06 billion. Based on its current enterprise value of $33.9 billion, SHOP trades at a forward EV/Sales ratio of 16.4. ETSY and WIX have forward EV/Sales ratios of 6.3 and 5.8, respectively.But SHOP continues to fly high in terms of growth. As its last quarterly results showed, its revenue continues to grow at a significant clip. The growth of e-commerce is definitely not over. But does it seem smart to buy SHOP stock now, when the company is entering the costly fulfillment business?The same thing could have been said about Amazon back in the mid-2000s. Back then, there was no guarantee that AMZN could parlay its success as a bookseller into a global retail juggernaut. Only time will tell if SHOP will achieve the same success. The Bottom Line on Shopify Stock: Its Future Is UncertainShopify's core software-as-a-service business is solid. Its competitive moat will enable it to sustain high growth, as its customers accelerate their pivot from bricks-and-mortar to e-commerce. But SHOP stock is not a buy at any price. At its current valuation, Sjopify stock seems frothy. Add in the new fulfillment build-out, and its future profitability continues to be uncertain.All bets are off with SHOP. The company's next quarterly results are due to be released in November. If the company can continue to generate 30%+ revenue growth, investors could dive into SHOP stock again.But buying SHOP today could be a costly bet. The best strategy for investors is to remain on the sidelines. Once the anticipated recession occurs, Shopify could be a screaming buy. Even if its growth is challenged in a tough economy, the company's long-term prospects may make it a compelling opportunity.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now * 7 Next-Generation Healthcare Stocks to Buy * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? The post Down 20% in a Month, Shopify Stock Isn't Worth Buying Yet appeared first on InvestorPlace.