Square: Not Pricing In Q2 Weakness

Square rallies near yearly highs after Q1 results.
The company should report a large decline in Q2 payments volumes and an EBITDA loss.
The stock trades at an insane 65x normalized EBITDA targets that are unlikely to be obtainable even in 2021.
Despite the obvious long-term impact of the coronavirus to Square (SQ) small business customers, the stock is now back close to yearly highs. The company faces a tough road ahead with a material impact to business in the current quarter and a questionable future. My investment thesis was bullish on a rebound at the lows near $40, but the stock is no longer appealing above $75.
Read the full article on Seeking Alpha. 

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

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Anonymous said…
Drive off a cliff

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