Saturday, November 10, 2018

Square: Cracks Forming

Square actually traded down following a big Q3 beat.
A lot of the negative signal from prior to the quarter contributed to the weakness in the stock.
The market has missed that share counts are exploding, up 15% YoY.
The stock still trades at about 23.5x '18 adjusted revenue estimates.
As some shareholders hate, my previous articles on Square (SQ) pointed out the substantial risks in owning the mobile payment provider with limited profits at stretched valuation multiples. Following the release of Q3 results, some more cracks are starting to form in the runaway growth story where my investment thesis already identified negative signals.
 Read the full article on Seeking Alpha. 

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