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Square is Yahoo Finance Plus’ investment idea of the day

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Yahoo Finance’s Jared Blikre reports details on Yahoo Finance’s Investment idea of the day.

Video Transcript

- All right. And finally, we've got our Yahoo Finance Plus Investment Idea of the Day. And Jared, it is Square, reporting second quarter earnings, and of course that big $29 billion buyout of the Australian company, Autopay. Afterpay, rather. Afterpay.

JARED BLIKRE: Yes, Afterpay. You got it. Yeah, that's a pretty big acquisition. And just look what it's done over the last year, basically doubling in price. However, haven't been able to squeeze past this level right here, so basically been in a trading range for much of the year. It is at the upper end of that range, so we're seeing it down 2%.

Not the biggest deal in the world, but we don't want to see another failure there. Otherwise, we're heading down to that lower support. I do have some commentary.

This is from Argus Research. And they are looking at a long-term target of $320. And they're saying, "Square payment volumes soar in second quarter," and they're agreeing to acquire Afterpay.

So let's get down to the details of that deal. The company also agreed to acquire Australian-based Afterpay Limited, which has a Buy Now, Pay Later platform that Square is going to integrate into its Seller and Cash App business units for $29 billion in stock. Square shares have nearly doubled over the past year, which we just saw, which we believe reflects expectations for continued hyper growth in revenues.

Our target price is $320, raised from $275. $320 would put it at a record high there. But again, we've got to pass these highs that have been a stumbling block for the prior months in the year, guys.