IB Net Payout Yields Model

Square: Confusion Over Results

Square rallied following soft 2020 guidance due likely to a confusion over net and adjusted revenues.
Revenue guidance suggests only 25% growth this year.
The stock trades at a very rich 76x EBITDA targets.
Square (SQ) has a lot of moving parts in their revenue numbers so the stock rallying on Q4 numbers and more specifically on disappointing 2020 guidance has investors chasing false revenue hype again. Despite the U.S. stock markets crashing over 10%, the stock is near recent highs. My investment thesis remains negative at this valuation due to the likelihood the market doesn't understand the presented revenue metrics and the ramifications.
Read the full article on Seeking Alpha. 

Disclosure: No position. Please review the disclaimer page for more details. 


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