70.73 +0.78 (1.11%)
After hours: 4:26PM EDT
|Bid||70.05 x 1000|
|Ask||70.10 x 1100|
|Day's Range||69.91 - 72.00|
|52 Week Range||49.82 - 101.15|
|Beta (3Y Monthly)||3.10|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 30, 2019 - Aug 5, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||82.34|
MoneyGram (MGI) launches low-cost international remittance services in Canada to grab a larger share of its growing money-transfer market.
The Zacks Analyst Blog Highlights: AngloGold, Square, Approach, Holly Energy and Franco-Nevada
Square (SQ) has opened up its platform built specifically for restaurant businesses to its restaurant delivery competitors DoorDash and Postmates, mirroring a strategy that PayPal (PYPL) employed to convert its rivals into partners.
(Bloomberg) -- Shopify Inc.’s biggest drop of 2019 shows the e-commerce stock is testing the limits of what investors are willing to pay for rapid revenue growth.The shares fell 8.9% in New York on Tuesday, their biggest drop since Dec. 14, after more than doubling from the start of the year. That run-up created more than $25 billion in market value as investors looked past rising competitive threats and focused on fast-growing sales and new online checkout products. The money-losing company’s shares now trade at around 21 times estimated sales, more expensive by that measure than any technology stock in the S&P 500 Index.That’s making Wall Street squeamish. At least five analysts have downgraded the company in the past two months. In almost every case, the lofty stock price was the top concern.“We now see more limited upside to shares over the next 12 months,” Wedbush analyst Ygal Arounian said in a Tuesday note downgrading the stock to neutral from buy. He cited a “premium valuation.”What started as co-founder and Chief Executive Officer Tobi Lutke’s effort to sell snowboards on the internet has grown into a business projected to generate more than $1.5 billion in revenue in 2019. In addition to online sales, Shopify now competes with companies like Square Inc. at the point of sale in brick-and-mortar stores. Last week, Ottawa-based Shopify said it plans to spend $1 billion on a chain of fulfillment centers that would pit it even more directly against Amazon.com Inc.Shopify’s break-neck expansion has come at the cost of profitability. The company hasn’t turned an annual profit on a GAAP basis and isn’t projected to until 2020, according to analyst estimates.While investors have surely been attracted to Shopify for its revenue growth, which is projected to exceed 40% this year, they also prize its execution. The company hasn’t missed sales estimates in the 16 quarters it has reported financial results as a publicly traded company.“The reason I think the shares have done so well, independent of the real strong and favorable environment for software stocks, is that it’s lived up to its promise and then some,” Tom Forte, a DA Davidson analyst, said in an interview. “They now have a lengthy track record of execution and being shrewd when it comes to capital allocation.”Forte remains bullish on Shopify and says increased U.S. regulatory scrutiny of Amazon and other tech giants could create additional opportunities for Shopify, making the fulfillment center push critical.Notwithstanding the recent downgrades, most analysts remain optimistic. Shopify’s U.S.-traded shares have 15 buy ratings, 11 holds and two sells, according to data compiled by Bloomberg. The stock has gained almost 1,600% since its May 2015 initial public offering at $17 a share.Bearish bets have fallen to the lowest level in more than a year, according to IHS Markit data. Shares on loan to short sellers account for just 2.1% of the float, down from a high of nearly 10% in October.Gerber Kawasaki Wealth & Investment Management sold some of its small stake in Shopify earlier this year based on the stock’s performance, according to Chief Executive Officer Ross Gerber.“We don’t have a large position,” he said. “If I did I would sell a little more for sure.”At the same time, Gerber said he still “loves” the company and is surprised that it hasn’t been acquired by a bigger rival like Amazon yet.(Updates shares in second paragraph.)To contact the reporter on this story: Jeran Wittenstein in San Francisco at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Richard Richtmyer, Morwenna ConiamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The desire to expand and diversify their businesses to drive more growth has increasingly put Square (SQ) and Shopify (SHOP) on a collision course. Last year, Square bought Weebly, a startup that helps small businesses build online presences.
Last year, Square (SQ) secured a contract to lend money to eBay sellers, thereby expanding the market opportunity for its loans business. Given this arrangement, progress at eBay that can help bring more sellers to the platform bodes well for Square.
Square (SQ) was absent from the list of the inaugural members of the Libra Association, the entity that will ensure that Facebook’s (FB) Libra cryptocurrency works as intended. Nearly 30 companies have joined the Libra Association.
In addition to Twitter and Square's successful IPOs, this investor has exited investments in startups that were acquired by Target, Silicon Valley Bank, Twilio and Stripe.
Tech giants like Amazon (AMZN), Apple (AAPL), Square (SQ) and others are providing financial flexibility to the underbanked customers with the help of their offerings.
Facebook's (FB) strategy to use Libra as an alternative to the U.S. dollar is a major headwind for banks and financial institutions worldwide.
Columbia Sportswear, SINA, Trade Desk, Roku and Square highlighted as Zacks Bull and Bear of the Day
It's an important niche, and Proofpoint fills it competently. Market analysts agree, and Proofpoint has been getting strong reviews for several months now. Proofpoint as the company continues to evolve towards offering a more complete 'people-centric security' suite." He gave PFPT shares a price target of $140, suggesting a 25% upside to the stock.
Alphabet's (GOOGL) Google is integrating deeper with PayPal to boost presence in digital payments industry and be more competitive against Apple, Amazon, Samsung and Square.
[Editor's note: This story was previously published in February 2019. It has since been updated and republished.] No investment strategy suits all the people all the time. This is particularly true for young investors in their 20's and 30's. Youth not only has social advantages; it can provide significant margin for your portfolio to grow. As such, high-growth stocks are ideal for the young-adult, millennial demographic.Talk to any financial advisor, and more often than not, they apply the Pareto principle for 20- or 30-somethings. Colloquially known as the 80-20 rule, advisors recommend that young investors have 80% of their portfolio in stocks, and the remainder in safer, interest-yielding assets. When it comes to millennial stock allocation, spring chickens should really consider high-growth stocks.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 3 Monthly Dividend Stocks to Buy Today Time is money, and in many cases, time is more valuable. That's because time can "buy" you money, but never the opposite way around. In this case, a younger investor's additional working years can help mitigate investments that have gone awry. Moreover, extra time allows riskier investments to fully expand to their potential.But don't just look into risk-reward ratios for their own sake. Instead, as a young investor in his or her 20s or 30s, you should broaden your horizon. While I'm not against trading current trends, this is a perfect chance to advantage longer-term growth forecasts.With that in mind, here are the top 10 high-growth stocks to buy for young investors. Amazon (AMZN)Source: Shutterstock Whenever discussions about high-growth stocks arise, Amazon (NASDAQ:AMZN) invariably makes most analysts' lists. What's not to like here? Not only does AMZN leverage an enviable track record in the markets, management continues to forge ahead into new frontiers. Amazon is a disruptor among disruptors.But sometimes, high-growth stocks are so obvious that they're not obvious. We all know the adage that what goes up must come down. This applies to any investment, and AMZN is no exception.As I previously discussed, AMZN is on the verge of unprecedented greatness. Those of you who are in your 20's and 30's have some recollection of a time when e-commerce didn't overwhelmingly dominate the retail sector. But we're so close to a generation coming of age that has no clue about the prior brick-and-mortar hegemony.When Generation Z enters the workforce en masse, they will buy through Amazon and other e-commerce channels, no question. That's why you must consider AMZN stock. Carvana (CVNA)Source: Carvana Carvana (NYSE:CVNA) takes a brilliant concept and brings it into fruition. Generally speaking, millennials don't share the same love for the automobile as did prior generations. Part of the decline in interest is the haggling over the price that used to be a given when buying a new car.Enter Carvana. CVNA combines the tech wizardry that young people love with a centuries-old retail industry. Rather than negotiate with pushy or unsavory salespeople, buyers can instead browse cars online. When they find one they like, CVNA delivers their vehicle to their driveway. Plus, Carvana offers a money-back guarantee to soothe concerns about buying a car sight (almost) unseen. * 3 Monthly Dividend Stocks to Buy Today Considering that young people do nearly everything online, Carvana is likely the future of car buying. That's one reason to buy CVNA stock. The other? Margins. Once the company firmly establishes itself, it has the potential to earn serious bucks. That's because CVNA charges a premium for its convenient services.So far, though, customers are willing to pay it, and that trend will continue with Gen Z coming aboard. TriNet Group (TNET)Source: Shutterstock For those of you who have worked in Fortune 500 companies, you realize the intensity of large-scale organizations. In order to handle the needs of tens of thousands of workers, the biggest companies employ the best human-resources team. But what the needs of small and mid-sized businesses? That's where TriNet Group (NYSE:TNET) comes in.TNET provides full-service HR for companies that are still in their growth phase. Essentially an outsourced HR firm, TNET offers comprehensive services for smaller organizations, but without the massive overhead. Therefore, management can concentrate their resources on their expansion strategies.TNET stock also makes sense from an industry trend point of view. Experts predict that by the year 2020, an astounding half of the U.S. workforce could be comprised of freelancers. Additionally, small businesses that employ fewer than 100 workers are not only becoming more prominent, they're collectively hiring millions annually.This new digital economy will require HR services. As a result, you'll want to keep a close eye on TNET stock. Canopy Growth Corp (CGC)Source: Shutterstock The legal-marijuana industry generates significant controversy. However, one thing cannot be denied: high-growth stocks levered towards cannabis have been growing. One such name is Canopy Growth Corp (NYSE:CGC). Year-to-date, CGC shares are up 50%.I'm digging CGC primarily because it's the most well-capitalized marijuana investment. Canopy sported a $14 billion-plus market cap, substantially higher than Aurora Cannabis' (NYSE:ACB) $7.7 billion. As InvestorPlace's own Bret Kenwell pointed out, that market cap rivals several well-known companies, including Macy's (NYSE:M) and Chipotle (NYSE:CMG).Ultimately, Kenwell advised to wait for a correction on CGC before jumping onboard, and that may now have happened. Either way, young investors must keep CGC on their short list. * 3 Monthly Dividend Stocks to Buy Today By the time millennials are looking at retirement, marijuana will have lost its Schedule I classification -- likely long before this point. History shows that the Prohibition era failed to curb Americans' desire for alcohol. History will eventually prove the same for cannabis.Indeed, as the Pew Research Center demonstrates, attitudes towards legalization have shifted positively. It's only a matter of time before the government listens to the will of the people. When that day comes, CGC will explode even higher. Square (SQ)Source: Via SquareSquare's (NYSE:SQ) appeal is immediately recognizable to anyone who observes business trends. As we discussed for TriNet Group, small businesses have grown rapidly since the Great Recession. Given the nature of technology in our lives, companies today value agility and specialization more than outright size.What makes SQ stock a compelling investment is that it evens the playing field for small businesses. Square provides portable credit-card readers that attach conveniently to your smartphone. That enables entities ranging from sole proprietors to small corporations to quickly setup a payment platform. * 3 Monthly Dividend Stocks to Buy Today Another factor driving SQ stock for the longer term? An increasing number of Americans are going cashless. According to a CNBC report late-last year, 50% of surveyed individuals reported they only carry cash half of the time they're out and about. Those that do carry cash usually hold $50 or less.Logically, this means we should see fewer cash-only businesses moving forward. And the types of businesses that would have once been cash only will likely gravitate towards Square's unique and convenient solution. Despite SQ stock being down 3% over the past three months, it has added 30% this year. Control4 (CTRL)Source: Shutterstock I first covered Control4 (NASDAQ:CTRL) in late July of this year. Since then, CTRL stock has jumped as much as 47% in the markets only to come tumbling down and then rally again, climbing 45% in the past three months. Like the other mentioned names, CTRL will likely gain on broader social trends, making it a strong pick for young investors and a potential high-growth stock.Control4 specializes in home-automation solutions, providing clients with interconnectivity benefits along with security. Given that anything can happen these days, people love the peace of mind of having an integrated smart-home system.But beyond the practicality that Control4's products and services provide, its target audience is extremely receptive to the company's offerings. Experts forecast that by the year 2020, home automation will become a $40 billion industry. Further, 47% of millennials own smart-home products. And 81% of prospective homebuyers are likely to select a home that has installed automation services. General Electric (GE)Source: Shutterstock General Electric (NYSE:GE) is a controversial pick for many reasons, but the biggest is this: for years, GE has become a negative-growth stock. Why on earth would I then include it among high-growth stocks?Admittedly, the idea isn't conventional and considering its history, GE stock is incredibly risky. The markets agree, selling it off by 55% last year alone. But recently it's been making a comeback and the opportunity is enticingly lucrative. That sentiment is doubly valid for young investors who have the extra margin to patiently wait out the current trouble. * 3 Monthly Dividend Stocks to Buy Today The question everybody asks is if management can truly turn this sinking ship around. While speculative, I think GE has a legitimate chance. As I detailed a few weeks ago, most analysts are bearish on General Electric due to its lagging Power division. The fear is that renewable energy will overrun the company.I say, not so fast! While renewable energy "works," it's still economically inefficient and while this is being corrected, GE has time to adapt, whether that means growing its own renewable energy offerings or compensating for lost revenue in other areas.That's the ticket for GE stock. However, it will take time, which suits young investors perfectly. Voyager Therapeutics (VYGR)Source: Shutterstock As millions of families worldwide can attest, watching a loved one suffer from a neurological disease is a painful journey. It can also be agonizingly frustrating as a once proud and independent person succumbs to physical and mental ailments.Voyager Therapeutics (NASDAQ:VYGR) aims to put an end to this scourge, and I give them all my blessings. Utilizing a common, naturally occurring virus called adeno-associated virus (AAV) as a "treatment carrier," VYGR scientists propose to target diseased cells for repair. A significant advantage for using AAVs is their long lifespans. A single dose could potentially lead to lifelong benefits.The technology is very promising but VYGR is still relatively in the early phase. Naturally, Voyager's financials aren't the greatest, and its share price is volatile. However, if the company manages a breakthrough, we will witness a paradigm shift in how we approach ailments such as Parkinson's disease, and it will become a hig-growth stockFurthermore, gene therapy holds the key for solving a multitude of other diseases. VYGR is among a few high-growth stocks that could spark a medical revolution. Young investors should carefully watch this space. Kinross Gold (KGC)Source: Jeremy Vohwinkle via Flickr (Modified)Although regular readers probably know my work involving cryptocurrencies and cannabis, I'm also a believer in gold. At the risk of sounding like some 2 a.m. infomercial -- not that I know what those sound like -- a healthy portfolio should include some physical precious metals, or at least SPDR Gold Shares (NYSEARCA:GLD).But for those who want to take a little bit of risk, I'd look into Kinross Gold (NYSE:KGC). As with many other high-growth stocks in the gold sector, KGC has a shaky history. Primarily, Kinross made expensive acquisitions at or near the gold bubble earlier this decade. Investors subsequently punished KGC stock. * 3 Monthly Dividend Stocks to Buy Today However, the shares have rebounded 21% over the last month as gold prices have increased to multi-year highs. And with the geopolitical and international trade outlook growing more uncertain, there's a good chance that gold prices will keep climbing for a long time.It's not a perfect story, but young investors have the time to wait out KGC, which looks poised to become a high-growth stock. Mitsubishi Heavy Industries (MHVYF)Source: Shutterstock I'm going to close my list of high-growth stocks with a contrarian play, Mitsubishi Heavy Industries (OTCMKTS:MHVYF) a core company of the Mitsubishi Group. With most Asian investments focusing on Chinese companies, it's easy to forget about Japan. However, I think this is a misstep that young investors should capitalize on, and MHVYF is ideal for this purpose.Let's pick the low-hanging fruit first. MHVYF is a renowned manufacturer of mining and industrial equipment. Although purely conjecture, Mitsubishi could play a significant role in Japan becoming a natural-resource exporter. According to CNBC, Japanese researchers found a "semi-infinite" amount of rare earth metals off Minamitorishima Island.Before you get too excited, the critical metals were discovered in the deep-sea bed, so currently, it's not economically feasible to extract them. However, where there's a will there's a way, and Mitsubishi could play a significant role. If so, this could launch MHVYF.Another trend working in Mitsubishi's favor is military conflict. With unpredictable North Korea mere miles away, Japan needs to beef up its defenses. I'm not talking about another war, but rather, a show of force to dissuade enemy attacks and provocations. Mitsubishi is one of Japan's major military contractors, and all geopolitical events point towards a rising MHVYF share price.As of this writing, Josh Enomoto is long gold bullion. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post 10 Best High-Growth Stocks to Buy for Young Investors appeared first on InvestorPlace.
It's been the prevailing wisdom that bank stocks can't rally, and so I've avoided betting on their upside. But there is an interesting sliver of the sector: fintech. These are the transactor companies and I personally favor Square (NASDAQ:SQ) and American Express (NYSE:AXP). The former, SQ stock, has been my go-to upside bet for months and it's been an easy trade.Source: Via SquareThis year, SQ stock has been out of favor on Wall Street. Suddenly, it lagged all the other major fintech competitors. Visa (NYSE:V), MasterCard (NYSE:MA) and Paypal (NASDAQ:PYPL) are at or near all-time highs while Square stock has been languishing miles away from its own. * 5 Boring Stocks to Buy This Summer Nevertheless, I remain positive on the company because the bull thesis has not changed. The world is still looking to migrate their transactions online, and SQ is part of the elite group of companies that will make that happen.InvestorPlace - Stock Market News, Stock Advice & Trading TipsRecently Facebook (NASDAQ:FB) announced its indirect entry into the arena with their introduction of LIBRA. This further legitimizes all electronic financial transactors. So today's point is I should stay long Square stock regardless of the short-term dips for as long as the economic variables remains the same. Why To Go Long SQ StockThe macroeconomic conditions remain strong. This is in spite of the recent rhetoric that it's deteriorating. In the end, I suspect that it's not as bad as most fear.So, I am comfortable in my assumption that this environment is likely to persist for months if not years. And within it, SQ stock is still a buy right here. Luckily I have already written about buying the May dip. I sold bull put spreads and bought calls.The spreads yielded maximum gains already expiring today in my favor. My calls are already up 64% so I am letting them run. I may sell some covered calls against them to further leverage my asset. Because I sold the put spread means that I am understating my profit because my basis cost is null. It's basically a free trade from here.I am not sharing to brag but rather to offer perspective. Today's bullish SQ stock note stands alone. It still has more upside potential than downside risk this year. Currently, Square stock is in a tough zone which has been pivotal so it will offer resistance. Onus is on the bulls to plow through, and it may take a few tries.My first target for SQ is near $84 per share. But that would only bring it back to within 15% of the all-time high. This means I may be understating my target for the stock -- so the reward is pretty darn big even after the 25% bounce from $60 per share.This is not the same as saying SQ stock cheap because it's definitely not. Visa, MasterCard and PYPL are much cheaper from the traditional sense but SQ still needs time to grow into its valuation. So comparing them purely on value is wrong.Rallies rarely unfold in one straight line so there will be rough areas. I expect resistance around $76 per share. Clearly $84 will also be a challenge but if the bulls can break through it then they could finish the primary 2019 objective of $95 per share. Trading SQ StockNow that we've looked at what's above current price we also need to watch for potential pitfalls below.Depending on risk tolerance I would probably set my first stop at $71 per share. If that's lost then it could invite sellers down to $68 then $64 per share. While this is not my forecast, it is a realistic scenario that exist below especially if the geopolitical headlines cause a market wide panic sell in the next few weeks.If for any reason equities collapse I bet that SQ would find footing around $60 per share. This has been a big pivot level for 15 months. These tend to be sticky because both bulls and bears have battle histories at them. * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 The bottom line is that Square stock had been in the penalty box for whatever reason but seems to have gotten out. It is now free to resume its prior trajectory because its products and service will be in high demand for years to come. I can even ignore the short-term dip because they are part of normal price action. This is a proven management team so they will execute well on plans.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 free here. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post Square Stock Is Breaking Out and Running to $84 appeared first on InvestorPlace.
After an explosive rally throughout most of last year, Square (NYSE:SQ) was destined for a correction. That's exactly what happened. In the final quarter of 2018, SQ stock dropped from nearly $100 to just over $56 by December end.Source: Chris Harrison via Flickr (Modified)Such volatility obviously didn't deter long-term Square stock believers. On a year-to-date basis, SQ is up nearly 33%. Although a significant distance away from its triple-digit peak, the upstart payment processing tech firm has treated stakeholders very well.That said, this year's strong run isn't lacking serious questions. Most of the gains occurred in the first two months of this year. Since the beginning of March, SQ stock is actually down double digits.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWe're not just talking about isolated trading sentiments. For instance, the ongoing U.S.-China trade war is a severe overhang on almost everybody. If we do have a prolonged tariff battle, domestic consumer sentiment will likely decline. If that happens, that hurts small businesses, the very segment to which Square stock is highly levered.These distractions are nothing to scoff at. I'll further concede that we may see nearer-term pain in SQ stock. However, the macro-trends far outweigh the noise. Here are three massive tailwinds to consider: Support for Small Businesses Benefits SQ StockDrive around your local retail centers and chances are you'll come across a familiar scene: both big and small operators closing up shop. * 7 Top-Rated Biotech Stocks to Invest In Today Democratic presidential candidate Andrew Yang has two culprits he loves to point out: automation and Amazon (NASDAQ:AMZN). He makes valid arguments. Automation will almost surely wipe out many entry-level retail jobs. And Amazon makes driving to the mall increasingly irrelevant.However, the mom-and-pop stores at least may have some reprieve from the digital onslaught. Advocacy and awareness groups have over the years encouraged shoppers to think small. This drive has led to significant achievements, such as Small Business Saturday, a shopping holiday held after Black Friday.But consumers aren't just thinking about the mom-and-pops for one day of the year. Instead, they've now made it a habit. In fact, a majority of consumers prefer shopping at small businesses during the holiday season.According to BlackEnterprise.com, millennials are willing to pay more at small-business retailers. This sentiment is especially noteworthy because millennials currently represent the largest workforce in the U.S. Logically, this all benefits SQ stock.How? As I briefly mentioned above, Square specializes in payment processing. But what they're really doing is equalizing the playing field. With their payment devices and online services, small businesses have the same tools as their larger counterparts. It's something to keep in mind when Square stock goes on discount, like right now. Risk-Taking May Pay Off for Square StockOne of the reasons why I'm bullish on SQ stock is that Square's management team takes smart risks. Recently, the company made headlines when reports indicated that they're quietly moving into the cannabidiol, or CBD space.On surface level, this shift presents huge risks, perhaps bigger than the potential payoff. True, most Americans today support marijuana legalization. Even some Republicans have advocated for cannabis initiatives. However, marijuana remains illegal under federal law.That's because the much-maligned plant has the dreaded Schedule I classification. This means that the federal government doesn't see any medicinal value with marijuana. It also implies that at any time, the feds could crack down on cannabis firms.Unsurprisingly, this has kept traditional financial institutions from going anywhere near CBD companies. It's not a stretch to say many small CBD businesses are desperate for cash inflows. Square can obviously help bring legitimacy to this industry, which may lift Square stock.But the real gamble is banking on full legalization at the federal level. Up to last year, that concept seemed like a pipe dream. However, an increasing number of states voting for legalization as well as geopolitical pressures have rationalized this once-wild idea.I talked about this extensively in my last write-up about Canopy Growth (NYSE:CGC). In a nutshell, a prolonged trade war will kill jobs. But marijuana creates jobs and is the fastest-growing segment of the labor market. * Stocks to Buy for $20 or Less If Trump insists on playing tough with China, he'll have to concede on weed. Ultimately, with Square's early push into CBD payment processing, SQ stock should jump even higher. SQ Enjoys International OpportunitiesA brilliant aspect regarding the longer-term outlook for Square stock is that the domestic tailwinds are quite substantial. However, the tech firm has many more exciting opportunities abroad.It's another topic I wrote about last month. To summarize, Japanese society has historically conducted commerce using cash transactions. Only recently has the average Japanese consumer started to use credit. Even then, the adoption rate is slow.Your typical digital-payments processing company might look at that and not even think about Japan. Not SQ. As with CBD, their leadership is characterized by visionary thinking. Once Japan opens to the idea of credit transactions, it can create a massive ripple effect for SQ stock.After all, Square took that initial risk to secure themselves a stronghold in this market.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post 3 Macro-Tailwinds That Could Drive Square Stock In The Near Term appeared first on InvestorPlace.
Square stock is down roughly 3.5% over the last three months as investors decide what's next for the once high-flying financial tech giant.
It's been a lackluster year so far for digital- payment firm Square (NYSE:SQ), whose share price plummeted with the overall market at the end of 2018 and has yet to recover all of its losses.SQ stock is still trading 30% below its 52-week high, despite appreciating by more than 27% over the past six months. Meanwhile, rival firms like PayPal (NASDAQ:PYPL) are trading at all-time highs as investors cheer their advancements in the payment processing space. Is Square stock bound to catch up or is the company's buzz starting to fizzle out?Source: Chris Harrison via Flickr (Modified)SQ stock has had a less-than-impressive year so far, but the same isn't true for the company behind the ticker. Square itself has been putting projects into motion that are likely to boost the firm's growth trajectory far into the future, lifting Square stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Value Stocks to Buy for the Second Half Cash AppWhile Square's efforts to become a payment processing titan are certainly worth considering, it's the firm's entry into the banking space that I find most intriguing. Square recently rolled out Cash App, which will compete directly with PayPal's Venmo service. Cash App is a huge step toward the future, or lack thereof, of the banking industry.For years, analysts have been talking about fintech (technology for the tech sector) dramatically changing the way banks operate, first with cryptocurrencies and now with person-to-person payments. So far, that disruption has been minor, but I'd wager that the banks' doomsday is coming.You need only look at China, where mobile payments using digital ecosystems have become the norm, to see the storm brewing. The merchant fees that credit cards take and the cumbersome mobile-payment options that banks offer have created an opening for mobile-payment processors, and Square is pouncing on that opportunity.Square's Cash App is still in the early stages, but so far it has a lot of promise. Users can pay through Cash App anywhere that Visa is accepted, and SQ has set up a loyalty program to encourage people to start using the service. Dubbed "Boost," the loyalty program offers discounts of 10% or more at a variety of coffee shops and restaurants. While SQ will have to devote funds to running the program, it's likely to pay off by driving engagement, boosting Square's revenue and SQ stock. Square's Ecosystem Is Positive for Square StockMeanwhile SQ has been hard at work on creating an ecosystem that its customers will become tied into. As fellow InvestorPlace contributor Will Healy pointed out, ecosystems are important for companies that want to become a top dog in their industries. All of the big dogs in the tech space got there by creating an ecosystem that customers want to become a part of, and don't want to leave. Apple Inc. (NASDAQ:AAPL) is a great example of this; despite a few rough years in which many criticized Apple's latest updates, customers remained loyal to it because the hassle of changing over to a new ecosystem was too high of a switching cost. Square is doing the same thing within the payment processing space. The firm began simply as a credit card processor, but has since added on services like a payroll arm as well as a financing option that customers can use to take out loans. SQ also recently added on a new feature that allows clients to manage delivery orders through its platform. Plus, Square has the potential to grow geographically. The firm is only operating in five countries at present, which is a relatively small footprint compared to competitors like PayPal, whose services are all around the world. With so much untapped potential around the globe, Square has a lot of possible growth on the horizon as it penetrates new international markets. The Cash App Is the FutureSQ stock looks poised to outperform over the next few years as its growth strategy starts to pay off. Those who buy SQ stock and hold it for the long-term will benefit from the growth that will be driven by Cash App. The program looks likely to expand exponentially as its loyalty discount entices users to spend using the app. If individual payments start to take the place of traditional banking, SQ stock has a good chance of becoming a long-term winner for investors who jump in now.As of this writing, Laura Hoy was long AAPL. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post Square Stock's Cash App Has Long-Term Potential appeared first on InvestorPlace.
Since Square Capital's inception 5 years ago, it's been able to loan nearly $4.5 billion dollars. The average loan is about $6,500, while the smallest is around $500. The Head of Square Capital Jackie Reses sits down with Yahoo Finance to share how it's helping women-owned and minority-owned businesses more than traditional loans.