April 20, 2024

Investments & Exits

Fintech Stock Forecast – Is Square Stock Worth Buying?

Several factors must be considered by investors contemplating a position in Square-parent Block (SQ). The expansion of Square’s Cash App for consumers, the acquisition of Afterpay, and the potential impact on the U.S. economic recession play a significant role. The Square Cash App saw a rise of 17% in monthly active users, which contributed to Block’s robust first-quarter earnings and revenue. However, a short-seller report raised issues related to increased Cash App user metrics. As per the fintech stock forecast, SQ stock is expected to decline by nearly 7% in 2023, following a 61% decline in 2018.

As anxieties of recession in the United States grow, investors ponder how Square, whose relatively low-income customer base, will survive a recession. As per the Square stock forecast 2030, Square intends to establish a multifaceted digital payments environment, catering to merchants and consumers with products such as the Square Cash App. The acquisition of Afterpay seeks to close the consumer financing services gap between the merchant and Cash App ecosystems.

Square has also embraced Bitcoin-based commerce and blockchain technology. Despite an upsurge during the financial crisis, the value of Bitcoin remains substantially below its peak in November 2021. Square faces competitors like PayPal, Stripe, and Shopify in the small business markets. With regards to the Square stock price prediction 2025, Square has expanded its line of products to include credit card readers and point-of-sale management software for larger enterprises.

 

Regarding financial performance, Square’s revenue, gross profit, and earnings have increased. Its EBITDA has increased as a result of cost-cutting measures, while the aggregate volume of payments from customers exceeded projections. However, the Relative Strength Rating and Accumulation/Distribution Rating for SQ stock as of May 22 indicate underperformance and the absence of a valid entry point.

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