Investors are focusing on the health of Square’s Cash 33mlardinoistechcrunch App and its monetization. This is key to the future of SQ stock, as it’s a major source of revenue for the company. Its Cash App also helps individuals manage their money, buy stocks and cryptocurrency, and more.
The app has 47 million monthly active users, up slightly from 44 million in 2021. Younger demographics are the primary drivers of Cash App growth. During worldnewsfact the coronavirus pandemic, Cash App saw an outsized boost in growth because people were looking for ways to get out of their ruts and stay financially active.
But cash App’s momentum has slowed as the U.S. economy slows. The bearish view is that the growth of the app is largely transitory and will eventually travelnowworld slow as the economy normalizes. Moreover, Fintech companies that are “buy now, pay later,” or BNPL, like Afterpay, face increased regulation.
Square has a lot of competition in its consumer financial app and small business market, so the price of SQ stock may be lower than investors expect. Rivals include PayPal (PYPL), First Data’s (FDC) Clover unit, Shopify (SHOP), merchant acquirers and well-funded startup Stripe.
Despite the negative outlook for Square’s financial apps, the company still has strong growth opportunities. In the small business space, SQ stock’s point-of-sale technology helps businesses sell goods and services by providing an efficient and secure payment processing platform.
With a broad product portfolio, the company can expand its customer base and grow its sales by adding more solutions for merchants and by expanding internationally. The company can also bolster its growth by increasing the amount of credit card transactions made on its point-of-sale devices.
The company has a wide range of products that help merchants with a variety of needs, such as invoicing and payroll. Its business software and banking services are used by sellers in various industries, including food trucks and small retailers.
The company also operates a global digital music travellworldnow platform, TIDAL, that brings musicians closer to their fans. It also runs a free, open-source bitcoin project called Spiral and is working to build an open developer platform for other blockchain technologies. The company reported September-quarter earnings and revenue that topped analyst estimates. The company is expected to report its fourth-quarter results on Feb. 23. EPS is forecast to be -$0.17. This compares to the average analyst estimate of -$0.38.
