Square (NYSE: SQ) is a digital payments firm. Its services allow sellers to use its platform to reach buyers, manage their businesses, and receive financing.
Shares of Square have been pretty volatile over the past 12 months, but are still up a whopping 65% in that time, as of September 21. As mentioned above, growth investors don’t worry too much about its present share price and instead are looking at Square’s solid fundamentals.
The company has a bright future as it focuses on building new tech, evidenced by it constantly adding new services and updating its features to keep up with the evolving business world. The firm is constantly thinking of new ways to make money, which is a great sign for growth investors.
Square’s Cash App is generating big revenue for the company. In the second quarter, the company posted a gross profit of $1.14 billion, up 91% year-over-year with its Cash App generating $546 million of that. However, it is Square’s moves into new markets and industries is what has growth investors excited about the stock.
Earlier this month, Square launched its new Square Register hardware in Canada in a bid to bring in more sellers from one of the world’s fastest-growing economies. In Q2, the firm’s seller ecosystem brought in gross profit of $585 million so the move into Canada will likely boost these figures again. In addition, Square is also breaking into new territories.
In August, the California-based firm announced its intention to acquire Afterpay (OTCMKTS: AFTPF) to help it break into the thriving ‘buy now, pay later’ sector.
These factors signal that Square has a lot of growth potential and might just be the perfect opportunity to kickstart your growth investing strategy.
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Financial Writer at MyWallSt
Nicole's favorite stock is Etsy because she loves its original and handmade items. She believes people are going to stop buying mass-produced items and start purchasing ‘one of a kind’ fashions and furnishings. In a world of sameness, Etsy has the advantage.