Why Square's Stock Is So Expensive

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Why Square's Stock Is So Expensive

Motley Fool2021-05-28

More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...

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Leira
·2021-05-30
Whyyyy
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2
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- Leira:
  Por quoi
  2021-05-31
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- zhuoyongquan:
  SiGh
  2021-05-31
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- yooniique:
  ??
  2021-05-30
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JiaminFeng
·2021-05-30
Have the potential to grow.
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pekss
·2021-05-29
It’s fortune is tied with that of bitcoin
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3
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- ngph:
  Agree
  2021-05-29
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- pekss:
  Good
  2021-05-29
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Alicia1605
·2021-05-28
Like and comment
Reply
1
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Alvisgzw
·2021-05-28
Hmmmm
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1
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JYIN
·2021-05-28
Like and comment pls
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3
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LearnInvest
·2021-05-28
Buy
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1
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Minion
·2021-05-28
Buy!₩
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2
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- Minion:
  buy when dip
  2021-05-28
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Benedict_cyh
·2021-05-28
A
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1
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- cks:
  nice
  2021-06-02
  Reply
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- cks:
  nice
  2021-05-30
  Reply
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- Benedict_cyh:
  B
  2021-05-30
  Reply
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Nightwing
·2021-05-28
Like and comment
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3
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- Nightwing:
  Thanks
  2021-05-28
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- Freddyd:
  Yup
  2021-05-28
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ShuJie
·2021-05-28
Intend to get it but hope the price goes lower abit
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2
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- HMian:
  cool
  2021-05-29
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- NP_YT:
  wait, be patient
  2021-05-28
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huat168
·2021-05-28
Good
Reply
6
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Liha
·2021-05-28
Comment n like.thanks!i will do the same too.
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- Liha:
  Niceeee
  2021-05-28
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- Liha:
  Yummm
  2021-05-28
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- huat168:
  ☕️
  2021-05-28
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DeWaee
·2021-05-28
Comment and like. Square' s growth rate is really impressive and thats also why it commands a much higher PE ratio. As always DYODD
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- ShininglightReplying toDeWaee:
  thanks
  2021-05-29
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- DeWaee:
  commented
  2021-05-28
  Reply
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- DeWaee:
  commented
  2021-05-28
  Reply
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chele
·2021-05-28
Pls like and comment, thanks!
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4
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- NonoAhah:
  Done
  2021-05-28
  Reply
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- Shininglight:
  help comment too thanks
  2021-05-28
  Reply
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charlito
·2021-05-28
Soooo expensive! Is it a semi bank haha.. shadow bank?
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- howeixiong:
  [Doubt]
  2021-05-28
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DanielHee
·2021-05-28
Comment and like pls. Ty
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4
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- Liha:
  Let me
  2021-05-28
  Reply
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- YS_ZENG:
  Pls like n comment back :)
  2021-05-28
  Reply
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HernHern
·2021-05-28
Like and comment
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4
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- HernHern:
  ReY
  2021-05-28
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- DanielHee:
  Done pls reply
  2021-05-28
  Reply
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- Shininglight:
  ok
  2021-05-28
  Reply
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HernHern
·2021-05-28
I don’t think so
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2
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ryanc
·2021-05-28
Comment and like pls
Reply
5
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- ShininglightReplying toZacN:
  thanks
  2021-05-28
  Reply
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- ZacNReplying toShininglight:
  Done
  2021-05-28
  Reply
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- Shininglight:
  ok. me need comment too
  2021-05-28
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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","article_id":"2138710402","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","pubTimestamp":1622202900,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Square's growing competitive advantage could justify its expense.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"为什么Square,Inc的股票这么贵","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{},"content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":137518286,"gmtCreate":1622361170045,"gmtModify":1704183480037,"author":{"id":"3574670459862914","authorId":"3574670459862914","name":"Leira","avatar":"https://static.tigerbbs.com/c093de36b9faf1e806c55a60e221cb74","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3574670459862914","authorIdStr":"3574670459862914"},"htmlText":"Whyyyy","listText":"Whyyyy","text":"Whyyyy","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":4,"repostSize":0,"link":"https://ttm.financial/post/137518286","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4518449,"gmtCreate":1622465858047,"gmtModify":1680792197551,"authorId":3574670459862914,"author":{"id":3574670459862914,"idStr":"3574670459862914","authorId":3574670459862914,"name":"Leira","avatar":"https://static.tigerbbs.com/c093de36b9faf1e806c55a60e221cb74","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":137518286,"type":1,"supId":4515901,"prevId":0,"content":"Por quoi","text":"Por quoi","html":"Por quoi"},{"id":4512703,"gmtCreate":1622424084111,"gmtModify":1680792085633,"authorId":3572847086869353,"author":{"id":3572847086869353,"idStr":"3572847086869353","authorId":3572847086869353,"name":"zhuoyongquan","avatar":"https://static.tigerbbs.com/3a8bd1a419099289ad26e7d4cdbf50c5","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":137518286,"type":1,"supId":0,"prevId":0,"content":"SiGh","text":"SiGh","html":"SiGh"},{"id":4507059,"gmtCreate":1622372461669,"gmtModify":1680791986470,"authorId":3582101588853029,"author":{"id":3582101588853029,"idStr":"3582101588853029","authorId":3582101588853029,"name":"yooniique","avatar":"https://static.tigerbbs.com/20d8b8e7a747237d1216fd5a0d6f3278","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":137518286,"type":1,"supId":0,"prevId":0,"content":"??","text":"??","html":"??"},{"id":4515901,"gmtCreate":1622439240686,"gmtModify":1663227660844,"authorId":3572847086869353,"author":{"id":3572847086869353,"idStr":"3572847086869353","authorId":3572847086869353,"name":"zhuoyongquan","avatar":"https://static.tigerbbs.com/3a8bd1a419099289ad26e7d4cdbf50c5","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":137518286,"type":1,"supId":0,"prevId":0,"content":"Whyyyyyyyy","text":"Whyyyyyyyy","html":"Whyyyyyyyy"}],"langContent":"EN"},{"id":137237826,"gmtCreate":1622349103865,"gmtModify":1704183336637,"author":{"id":"3584954263002423","authorId":"3584954263002423","name":"JiaminFeng","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3584954263002423","authorIdStr":"3584954263002423"},"htmlText":"Have the potential to grow.","listText":"Have the potential to grow.","text":"Have the potential to grow.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/137237826","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":134766919,"gmtCreate":1622260577231,"gmtModify":1704182436217,"author":{"id":"3581636635898281","authorId":"3581636635898281","name":"pekss","avatar":"https://static.tigerbbs.com/7dfef98c44b3810cffef7f3eb78524ba","vip":1,"crmLevel":5,"crmLevelSwitch":1,"idStr":"3581636635898281","authorIdStr":"3581636635898281"},"htmlText":"It’s fortune is tied with that of bitcoin&nbsp;","listText":"It’s fortune is tied with that of bitcoin&nbsp;","text":"It’s fortune is tied with that of bitcoin","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/134766919","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4494346,"gmtCreate":1622260699711,"gmtModify":1680791759752,"authorId":3581841475262844,"author":{"id":3581841475262844,"idStr":"3581841475262844","authorId":3581841475262844,"name":"ngph","avatar":"https://static.tigerbbs.com/184d156a6098c9891cc55260418562f6","vip":1,"currentWearingBadge":{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Have published 3 or more picked posts, and have published at least one picked post and participated in comments within 30 days","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.09.25","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2007},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134766919,"type":1,"supId":0,"prevId":0,"content":"Agree","text":"Agree","html":"Agree"},{"id":4494394,"gmtCreate":1622260873641,"gmtModify":1680791758864,"authorId":3581636635898281,"author":{"id":3581636635898281,"idStr":"3581636635898281","authorId":3581636635898281,"name":"pekss","avatar":"https://static.tigerbbs.com/7dfef98c44b3810cffef7f3eb78524ba","vip":1,"currentWearingBadge":{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Have published 3 or more picked posts, and have published at least one picked post and participated in comments within 30 days","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.03.31","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2007},"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134766919,"type":1,"supId":0,"prevId":0,"content":"Good","text":"Good","html":"Good"}],"langContent":"EN"},{"id":134381715,"gmtCreate":1622208231337,"gmtModify":1704181477470,"author":{"id":"3583587990079320","authorId":"3583587990079320","name":"Alicia1605","avatar":"https://static.tigerbbs.com/472df922d9d32d4b84b5eaad8d0a01a4","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3583587990079320","authorIdStr":"3583587990079320"},"htmlText":"Like and comment","listText":"Like and comment","text":"Like and comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/134381715","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":134336405,"gmtCreate":1622206890607,"gmtModify":1704181455325,"author":{"id":"3575175105051692","authorId":"3575175105051692","name":"Alvisgzw","avatar":"https://static.tigerbbs.com/02e55dbf7031255f561a06b003aa8844","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"3575175105051692","authorIdStr":"3575175105051692"},"htmlText":"Hmmmm","listText":"Hmmmm","text":"Hmmmm","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/134336405","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":134330939,"gmtCreate":1622206412221,"gmtModify":1704181447570,"author":{"id":"3579857844356283","authorId":"3579857844356283","name":"JYIN","avatar":"https://static.tigerbbs.com/b337508ff050c1853412bfdd7bc3bd32","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3579857844356283","authorIdStr":"3579857844356283"},"htmlText":"Like and comment pls","listText":"Like and comment pls","text":"Like and comment pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/134330939","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":134397268,"gmtCreate":1622206376154,"gmtModify":1704181446923,"author":{"id":"3557149694723733","authorId":"3557149694723733","name":"LearnInvest","avatar":"https://static.tigerbbs.com/594b73908b38c8292bfb94c979249bc7","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3557149694723733","authorIdStr":"3557149694723733"},"htmlText":"Buy","listText":"Buy","text":"Buy","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/134397268","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":134308988,"gmtCreate":1622205312044,"gmtModify":1704181426175,"author":{"id":"3574116666789867","authorId":"3574116666789867","name":"Minion","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3574116666789867","authorIdStr":"3574116666789867"},"htmlText":"Buy!₩","listText":"Buy!₩","text":"Buy!₩","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/134308988","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4484974,"gmtCreate":1622205365308,"gmtModify":1680791588419,"authorId":3574116666789867,"author":{"id":3574116666789867,"idStr":"3574116666789867","authorId":3574116666789867,"name":"Minion","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134308988,"type":1,"supId":0,"prevId":0,"content":"buy when <u>dip</u>","text":"buy when <u>dip</u>","html":"buy when <u>dip</u>"}],"langContent":"EN"},{"id":134303253,"gmtCreate":1622205187672,"gmtModify":1704181424404,"author":{"id":"3581667328055955","authorId":"3581667328055955","name":"Benedict_cyh","avatar":"https://static.tigerbbs.com/216a5cf2e56f81472309860a063b75a6","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3581667328055955","authorIdStr":"3581667328055955"},"htmlText":"A","listText":"A","text":"A","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":5,"repostSize":0,"link":"https://ttm.financial/post/134303253","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4541452,"gmtCreate":1622607954640,"gmtModify":1680792593796,"authorId":3585217936170343,"author":{"id":3585217936170343,"idStr":"3585217936170343","authorId":3585217936170343,"name":"cks","avatar":"https://community-static.tradeup.com/news/4fe6f857c37a492b36f7573221024ce9","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134303253,"type":1,"supId":4504116,"prevId":0,"content":"nice","text":"nice","html":"nice"},{"id":4504930,"gmtCreate":1622353112702,"gmtModify":1680791952605,"authorId":3585217936170343,"author":{"id":3585217936170343,"idStr":"3585217936170343","authorId":3585217936170343,"name":"cks","avatar":"https://community-static.tradeup.com/news/4fe6f857c37a492b36f7573221024ce9","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134303253,"type":1,"supId":4494657,"prevId":0,"content":"nice","text":"nice","html":"nice"},{"id":4504116,"gmtCreate":1622348080912,"gmtModify":1680791935873,"authorId":3581667328055955,"author":{"id":3581667328055955,"idStr":"3581667328055955","authorId":3581667328055955,"name":"Benedict_cyh","avatar":"https://static.tigerbbs.com/216a5cf2e56f81472309860a063b75a6","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134303253,"type":1,"supId":0,"prevId":0,"content":"B","text":"B","html":"B"},{"id":4494657,"gmtCreate":1622262065094,"gmtModify":1680791769553,"authorId":3581667328055955,"author":{"id":3581667328055955,"idStr":"3581667328055955","authorId":3581667328055955,"name":"Benedict_cyh","avatar":"https://static.tigerbbs.com/216a5cf2e56f81472309860a063b75a6","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134303253,"type":1,"supId":0,"prevId":0,"content":"B","text":"B","html":"B"},{"id":4571896,"gmtCreate":1622769010751,"gmtModify":1663227919153,"authorId":3581667328055955,"author":{"id":3581667328055955,"idStr":"3581667328055955","authorId":3581667328055955,"name":"Benedict_cyh","avatar":"https://static.tigerbbs.com/216a5cf2e56f81472309860a063b75a6","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134303253,"type":1,"supId":4504116,"prevId":0,"content":"Hi","text":"Hi","html":"Hi"}],"langContent":"EN"},{"id":134979047,"gmtCreate":1622204384089,"gmtModify":1704181409011,"author":{"id":"3582838688159375","authorId":"3582838688159375","name":"Nightwing","avatar":"https://static.tigerbbs.com/eee73b31aa0c67bc07e46fe474bb323e","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3582838688159375","authorIdStr":"3582838688159375"},"htmlText":"Like and comment&nbsp;","listText":"Like and comment&nbsp;","text":"Like and comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/134979047","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4485488,"gmtCreate":1622208443707,"gmtModify":1680791598885,"authorId":3582838688159375,"author":{"id":3582838688159375,"idStr":"3582838688159375","authorId":3582838688159375,"name":"Nightwing","avatar":"https://static.tigerbbs.com/eee73b31aa0c67bc07e46fe474bb323e","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134979047,"type":1,"supId":0,"prevId":0,"content":"Thanks","text":"Thanks","html":"Thanks"},{"id":4484885,"gmtCreate":1622204942320,"gmtModify":1680791594214,"authorId":3574854386909318,"author":{"id":3574854386909318,"idStr":"3574854386909318","authorId":3574854386909318,"name":"Freddyd","avatar":"https://static.tigerbbs.com/7967e4125926fdf32d9965f6fe32519d","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134979047,"type":1,"supId":0,"prevId":0,"content":"Yup","text":"Yup","html":"Yup"}],"langContent":"EN"},{"id":134944559,"gmtCreate":1622204209071,"gmtModify":1704181406586,"author":{"id":"3580280937765956","authorId":"3580280937765956","name":"ShuJie","avatar":"https://static.tigerbbs.com/fab78f17f563d835249358a8d127785c","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3580280937765956","authorIdStr":"3580280937765956"},"htmlText":"Intend to get it but hope the price goes lower abit","listText":"Intend to get it but hope the price goes lower abit","text":"Intend to get it but hope the price goes lower abit","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/134944559","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4487685,"gmtCreate":1622217698538,"gmtModify":1680791635683,"authorId":3577877222927887,"author":{"id":3577877222927887,"idStr":"3577877222927887","authorId":3577877222927887,"name":"HMian","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134944559,"type":1,"supId":0,"prevId":0,"content":"cool","text":"cool","html":"cool"},{"id":4485236,"gmtCreate":1622207105254,"gmtModify":1680791592942,"authorId":3572043809285615,"author":{"id":3572043809285615,"idStr":"3572043809285615","authorId":3572043809285615,"name":"NP_YT","avatar":"https://static.itradeup.com/news/fad9f70abb174e3e09e4caf3f9c0c13a","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134944559,"type":1,"supId":0,"prevId":0,"content":"wait, be patient","text":"wait, be patient","html":"wait, be patient"}],"langContent":"EN"},{"id":134945716,"gmtCreate":1622204170935,"gmtModify":1704181405290,"author":{"id":"3577858781887046","authorId":"3577858781887046","name":"huat168","avatar":"https://static.tigerbbs.com/f4331c579b39f5904bca699993489762","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3577858781887046","authorIdStr":"3577858781887046"},"htmlText":"Good&nbsp;","listText":"Good&nbsp;","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/134945716","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":134941353,"gmtCreate":1622203812072,"gmtModify":1704181399124,"author":{"id":"3580021038510346","authorId":"3580021038510346","name":"Liha","avatar":"https://static.tigerbbs.com/a4ba484754a4e8fc7a7c54ab52161218","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3580021038510346","authorIdStr":"3580021038510346"},"htmlText":"Comment n like.thanks!i will do the same too.","listText":"Comment n like.thanks!i will do the same too.","text":"Comment n like.thanks!i will do the same too.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":4,"repostSize":0,"link":"https://ttm.financial/post/134941353","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4484834,"gmtCreate":1622204563382,"gmtModify":1680791593754,"authorId":3580021038510346,"author":{"id":3580021038510346,"idStr":"3580021038510346","authorId":3580021038510346,"name":"Liha","avatar":"https://static.tigerbbs.com/a4ba484754a4e8fc7a7c54ab52161218","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134941353,"type":1,"supId":4484713,"prevId":0,"content":"Niceeee","text":"Niceeee","html":"Niceeee"},{"id":4484854,"gmtCreate":1622204674523,"gmtModify":1680791593092,"authorId":3580021038510346,"author":{"id":3580021038510346,"idStr":"3580021038510346","authorId":3580021038510346,"name":"Liha","avatar":"https://static.tigerbbs.com/a4ba484754a4e8fc7a7c54ab52161218","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134941353,"type":1,"supId":4484786,"prevId":0,"content":"Yummm","text":"Yummm","html":"Yummm"},{"id":4484786,"gmtCreate":1622204196763,"gmtModify":1680791583670,"authorId":3577858781887046,"author":{"id":3577858781887046,"idStr":"3577858781887046","authorId":3577858781887046,"name":"huat168","avatar":"https://static.tigerbbs.com/f4331c579b39f5904bca699993489762","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134941353,"type":1,"supId":0,"prevId":0,"content":"☕️","text":"☕️","html":"☕️"},{"id":4484713,"gmtCreate":1622203832247,"gmtModify":1680791579802,"authorId":3571801721484161,"author":{"id":3571801721484161,"idStr":"3571801721484161","authorId":3571801721484161,"name":"Keychain","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":8,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134941353,"type":1,"supId":0,"prevId":0,"content":"Good","text":"Good","html":"Good"}],"langContent":"EN"},{"id":134949440,"gmtCreate":1622203719780,"gmtModify":1704181397021,"author":{"id":"3559862613975413","authorId":"3559862613975413","name":"DeWaee","avatar":"https://community-static.tradeup.com/news/ede7f2be393dc5d5b15a5004ab2df6f5","vip":1,"crmLevel":3,"crmLevelSwitch":1,"idStr":"3559862613975413","authorIdStr":"3559862613975413"},"htmlText":"Comment and like. Square' s growth rate is really impressive and thats also why it commands a much higher PE ratio. As always DYODD","listText":"Comment and like. Square' s growth rate is really impressive and thats also why it commands a much higher PE ratio. As always DYODD","text":"Comment and like. Square' s growth rate is really impressive and thats also why it commands a much higher PE ratio. As always DYODD","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":6,"repostSize":0,"link":"https://ttm.financial/post/134949440","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4488095,"gmtCreate":1622219820241,"gmtModify":1680791649023,"authorId":3563607262597606,"author":{"id":3563607262597606,"idStr":"3563607262597606","authorId":3563607262597606,"name":"Shininglight","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":3559862613975413,"repliedAuthor":{"id":3559862613975413,"idStr":"3559862613975413","authorId":3559862613975413,"name":"DeWaee","avatar":"https://community-static.tradeup.com/news/ede7f2be393dc5d5b15a5004ab2df6f5","vip":1,"crmLevel":3,"crmLevelSwitch":1,"individualDisplayBadges":[]},"objectId":134949440,"type":1,"supId":4484699,"prevId":4487635,"content":"<u>thanks</u>","text":"<u>thanks</u>","html":"<u>thanks</u>"},{"id":4487635,"gmtCreate":1622217460936,"gmtModify":1680791641689,"authorId":3559862613975413,"author":{"id":3559862613975413,"idStr":"3559862613975413","authorId":3559862613975413,"name":"DeWaee","avatar":"https://community-static.tradeup.com/news/ede7f2be393dc5d5b15a5004ab2df6f5","vip":1,"crmLevel":3,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134949440,"type":1,"supId":4484699,"prevId":0,"content":"commented","text":"commented","html":"commented"},{"id":4487629,"gmtCreate":1622217434494,"gmtModify":1680791640540,"authorId":3559862613975413,"author":{"id":3559862613975413,"idStr":"3559862613975413","authorId":3559862613975413,"name":"DeWaee","avatar":"https://community-static.tradeup.com/news/ede7f2be393dc5d5b15a5004ab2df6f5","vip":1,"crmLevel":3,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134949440,"type":1,"supId":4484699,"prevId":0,"content":"commented","text":"commented","html":"commented"},{"id":4484799,"gmtCreate":1622204333134,"gmtModify":1680791593621,"authorId":3563607262597606,"author":{"id":3563607262597606,"idStr":"3563607262597606","authorId":3563607262597606,"name":"Shininglight","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":3571801721484161,"repliedAuthor":{"id":3571801721484161,"idStr":"3571801721484161","authorId":3571801721484161,"name":"Keychain","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":8,"crmLevelSwitch":0,"individualDisplayBadges":[]},"objectId":134949440,"type":1,"supId":4484699,"prevId":4484717,"content":"<u>thanks</u>","text":"<u>thanks</u>","html":"<u>thanks</u>"},{"id":4484717,"gmtCreate":1622203861723,"gmtModify":1680791582183,"authorId":3571801721484161,"author":{"id":3571801721484161,"idStr":"3571801721484161","authorId":3571801721484161,"name":"Keychain","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":8,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134949440,"type":1,"supId":4484699,"prevId":0,"content":"Good","text":"Good","html":"Good"}],"langContent":"EN"},{"id":134949289,"gmtCreate":1622203692641,"gmtModify":1704181396698,"author":{"id":"3581297437659130","authorId":"3581297437659130","name":"chele","avatar":"https://static.tigerbbs.com/8d0edba69115ae29cdd299950cba46fc","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3581297437659130","authorIdStr":"3581297437659130"},"htmlText":"Pls like and comment, thanks!&nbsp;","listText":"Pls like and comment, thanks!&nbsp;","text":"Pls like and comment, thanks!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/134949289","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4484927,"gmtCreate":1622205128936,"gmtModify":1680791587502,"authorId":3583475767705151,"author":{"id":3583475767705151,"idStr":"3583475767705151","authorId":3583475767705151,"name":"NonoAhah","avatar":"https://static.tigerbbs.com/4c8811a1f89559a718bd4b3e3a64bdf5","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134949289,"type":1,"supId":0,"prevId":0,"content":"Done","text":"Done","html":"Done"},{"id":4484700,"gmtCreate":1622203760102,"gmtModify":1680791581390,"authorId":3563607262597606,"author":{"id":3563607262597606,"idStr":"3563607262597606","authorId":3563607262597606,"name":"Shininglight","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134949289,"type":1,"supId":0,"prevId":0,"content":"help comment too <u>thanks</u>","text":"help comment too <u>thanks</u>","html":"help comment too <u>thanks</u>"}],"langContent":"EN"},{"id":134957665,"gmtCreate":1622203528157,"gmtModify":1704181394271,"author":{"id":"3581727570212837","authorId":"3581727570212837","name":"charlito","avatar":"https://static.tigerbbs.com/187f09a2c9b9e341d7b9423366682194","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3581727570212837","authorIdStr":"3581727570212837"},"htmlText":"Soooo expensive! Is it a semi bank haha.. shadow bank?","listText":"Soooo expensive! Is it a semi bank haha.. shadow bank?","text":"Soooo expensive! Is it a semi bank haha.. shadow bank?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/134957665","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4484751,"gmtCreate":1622204015969,"gmtModify":1680791577450,"authorId":3550798757796905,"author":{"id":3550798757796905,"idStr":"3550798757796905","authorId":3550798757796905,"name":"howeixiong","avatar":"https://static.tigerbbs.com/fea539af5db0091afc3fa5280f22719a","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134957665,"type":1,"supId":0,"prevId":0,"content":"[Doubt]","text":"[Doubt]","html":"[Doubt]"}],"langContent":"EN"},{"id":134954240,"gmtCreate":1622203460680,"gmtModify":1704181393139,"author":{"id":"3560747638234682","authorId":"3560747638234682","name":"DanielHee","avatar":"https://static.tigerbbs.com/090a057ab07500c049484fd184e1322b","vip":1,"hat":"https://static.tigerbbs.com/f84d87792f02cf78e80ee34979fd31e5","crmLevel":8,"crmLevelSwitch":0,"idStr":"3560747638234682","authorIdStr":"3560747638234682"},"htmlText":"Comment and like pls. Ty","listText":"Comment and like pls. Ty","text":"Comment and like pls. Ty","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/134954240","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4484724,"gmtCreate":1622203899692,"gmtModify":1680791581896,"authorId":3580021038510346,"author":{"id":3580021038510346,"idStr":"3580021038510346","authorId":3580021038510346,"name":"Liha","avatar":"https://static.tigerbbs.com/a4ba484754a4e8fc7a7c54ab52161218","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134954240,"type":1,"supId":4484692,"prevId":0,"content":"Let me","text":"Let me","html":"Let me"},{"id":4484692,"gmtCreate":1622203699562,"gmtModify":1680791578925,"authorId":3561416218644754,"author":{"id":3561416218644754,"idStr":"3561416218644754","authorId":3561416218644754,"name":"YS_ZENG","avatar":"https://static.tigerbbs.com/80872255ccfe73879d5d778410465550","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134954240,"type":1,"supId":0,"prevId":0,"content":"Pls like n comment back :)","text":"Pls like n comment back :)","html":"Pls like n comment back :)"}],"langContent":"EN"},{"id":134954116,"gmtCreate":1622203445935,"gmtModify":1704181392331,"author":{"id":"3576492761186891","authorId":"3576492761186891","name":"HernHern","avatar":"https://static.tigerbbs.com/aa29f3c7da56608b062745f4f54f8524","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":7,"crmLevelSwitch":1,"idStr":"3576492761186891","authorIdStr":"3576492761186891"},"htmlText":"Like and comment&nbsp;","listText":"Like and comment&nbsp;","text":"Like and comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/134954116","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4487086,"gmtCreate":1622215004789,"gmtModify":1680791627710,"authorId":3576492761186891,"author":{"id":3576492761186891,"idStr":"3576492761186891","authorId":3576492761186891,"name":"HernHern","avatar":"https://static.tigerbbs.com/aa29f3c7da56608b062745f4f54f8524","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-3","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"President Tiger","description":"The transaction amount of the securities account reaches $1,000,000","bigImgUrl":"https://static.tigerbbs.com/fbeac6bb240db7da8b972e5183d050ba","smallImgUrl":"https://static.tigerbbs.com/436cdf80292b99f0a992e78750ac4e3a","grayImgUrl":"https://static.tigerbbs.com/506a259a7b456f037592c3b23c779599","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.07.13","exceedPercentage":"93.45%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":7,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134954116,"type":1,"supId":4484652,"prevId":0,"content":"ReY","text":"ReY","html":"ReY"},{"id":4484652,"gmtCreate":1622203514617,"gmtModify":1680791579720,"authorId":3560747638234682,"author":{"id":3560747638234682,"idStr":"3560747638234682","authorId":3560747638234682,"name":"DanielHee","avatar":"https://static.tigerbbs.com/090a057ab07500c049484fd184e1322b","vip":1,"crmLevel":8,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134954116,"type":1,"supId":0,"prevId":0,"content":"Done pls reply","text":"Done pls reply","html":"Done pls reply"},{"id":4484703,"gmtCreate":1622203771480,"gmtModify":1680791578057,"authorId":3563607262597606,"author":{"id":3563607262597606,"idStr":"3563607262597606","authorId":3563607262597606,"name":"Shininglight","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134954116,"type":1,"supId":4484652,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"}],"langContent":"EN"},{"id":134954399,"gmtCreate":1622203436211,"gmtModify":1704181392009,"author":{"id":"3576492761186891","authorId":"3576492761186891","name":"HernHern","avatar":"https://static.tigerbbs.com/aa29f3c7da56608b062745f4f54f8524","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":7,"crmLevelSwitch":1,"idStr":"3576492761186891","authorIdStr":"3576492761186891"},"htmlText":"&nbsp;I don’t think so","listText":"&nbsp;I don’t think so","text":"I don’t think so","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/134954399","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":134952414,"gmtCreate":1622203301038,"gmtModify":1704181392978,"author":{"id":"3567140487499465","authorId":"3567140487499465","name":"ryanc","avatar":"https://static.tigerbbs.com/29f9678058f00cb71faa6bac99a0f386","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3567140487499465","authorIdStr":"3567140487499465"},"htmlText":"Comment and like pls","listText":"Comment and like pls","text":"Comment and like pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":4,"repostSize":0,"link":"https://ttm.financial/post/134952414","repostId":2138710402,"repostType":4,"repost":{"id":"2138710402","pubTimestamp":1622202900,"share":"https://ttm.financial/m/news/2138710402?lang=&edition=fundamental","pubTime":"2021-05-28 19:55","market":"us","language":"en","title":"Why Square's Stock Is So Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=2138710402","media":"Motley Fool","summary":"Square's growing competitive advantage could justify its expense.","content":"<p>More than a year out now from the start of the pandemic,<b> Square</b>'s (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of <b>Bitcoin,</b> and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.</p>\n<h2>Just how overpriced is Square?</h2>\n<p>By most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The <b>S&amp;P 500</b>'s current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b>'s (NASDAQ:PYPL) P/E ratio of 60.</p>\n<p>However, <a href=\"https://laohu8.com/S/AONE\">one</a> reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/57256a620ddc4332a483c2fa4ea7eedf\" tg-width=\"720\" tg-height=\"435\"><span>SQ data by YCharts</span></p>\n<p>Still, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.</p>\n<p>Furthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.</p>\n<p>Outside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.</p>\n<p>Also, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.</p>\n<h2>Why investors should consider it despite the expense</h2>\n<p>Despite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.</p>\n<p>However, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.</p>\n<p>Moreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.</p>\n<p>Furthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.</p>\n<p>From the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.</p>\n<h2>Where Square stands</h2>\n<p>Indeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Square's Stock Is So Expensive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Square's Stock Is So Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-28 19:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2021/05/28/why-squares-stock-is-so-expensive/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2138710402","content_text":"More than a year out now from the start of the pandemic, Square's (NYSE:SQ) investors have prospered, benefitting from the accelerated digitization of retail, the renewed popularity of Bitcoin, and a relatively quick recovery in the fintech sector after the March 2020 sell-off. While the stock price increases have made Square an expensive stock, a growing competitive advantage the company is building on could help justify its expense.\nJust how overpriced is Square?\nBy most measures, Square has become an expensive stock. It was boasting a P/E ratio of just over 305 at the time of this writing. The S&P 500's current P/E multiple of 45 pales in comparison, even though that index has reached multi-year highs. Square also trades far above archrival PayPal's (NASDAQ:PYPL) P/E ratio of 60.\nHowever, one reason Square has become expensive is its performance. Square's stock price has risen by 170% over the last year, compared with just over 70% gains for PayPal. Square's return increases to 430% when compared with the March 2020 low.\nSQ data by YCharts\nStill, recent financials appear to not justify such an earnings multiple. An accounting rule requiring the company to count the value of Bitcoin transactions as revenue skewed revenue figures. However, when not counting Bitcoin, revenue still rose 44% in the latest quarter from year-ago levels. Moreover, the $39 million profit came in much higher than the $106 million loss in the same quarter last year.\nFurthermore, the stock is in recovery mode since the pandemic brought falling profits in 2020. Revenue for 2020 still increased by 17% compared with fiscal 2019. Nonetheless, the company also experienced a 47% increase in operating expenses. Even with $292 million in income from non-core sources, net income fell to $213 million, a 43% reduction from last year's levels.\nOutside of increases in Cash App-related profit and operating expenses, Square did not publish forward guidance. Still, the predicted 167% increase in Cash App net income for the second quarter could comfort investors who paid the stock's current valuation.\nAlso, before the pandemic, revenue increased 43% in fiscal 2019, and Square reported its first annual profit of $375 million that year. The 2019 revenue figure comes in near the revenue increase in Q1 2021, indicating pre-pandemic growth rates have returned. Additionally, such increases have led to a forward P/E of 145, a reduction that could ease the sting of Square's current valuation.\nWhy investors should consider it despite the expense\nDespite recovering financials, Square may justify its expensive stock through a key competitive advantage: a more comprehensive finance ecosystem. Yes, PayPal reaches over 200 countries compared to Square's current five countries. PayPal also can manage most personal finance functions between PayPal and Venmo, which competes directly with Cash App.\nHowever, Square announced that it will soon open up to sellers in Ireland. Since this could easily take Square into the 18 other European Union countries that use the euro, investors should not discount Square's international aspirations.\nMoreover, PayPal does not offer the equivalent of Square Register or Square Payroll to handle business transactions and payroll, respectively. This means that only Square accommodates both individuals and businesses in its ecosystem.\nFurthermore, the most critical business-related function may pertain to its bank charter. As a bank, Square can make business loans without bringing in a third party. Additionally, according to Bloomberg, Square will soon offer business and checking accounts, meaning businesses that want to fully embrace fintech no longer need a traditional bank. That could spell further trouble for banks if Square starts offering these services to individuals.\nFrom the stockholder's perspective, this move could also lead to charges that Square will \"take over finance.\" That fear stands little chance of becoming reality, and investors should expect some banks to adapt and survive. Nonetheless, the perception could stoke investor interest in Square that comes at the expense of banks.\nWhere Square stands\nIndeed, Square's current earnings multiple can undoubtedly put off investors. However, with its Cash App driving triple-digit percentage income growth and its growing finance ecosystem, it appears poised to bring profound change to its industry. As conditions stand now, it could easily win business from traditional banks and bring massive transformation to the industry. As it adds customers and expands to more countries, today's stock price may not appear expensive for long.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4485808,"gmtCreate":1622209752720,"gmtModify":1680791612317,"authorId":3563607262597606,"author":{"id":3563607262597606,"idStr":"3563607262597606","authorId":3563607262597606,"name":"Shininglight","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":3577220211671569,"repliedAuthor":{"id":3577220211671569,"idStr":"3577220211671569","authorId":3577220211671569,"name":"ZacN","avatar":"https://static.tigerbbs.com/4b39e21f419b5bf9c135c152e2e2b227","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.11.22","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"objectId":134952414,"type":1,"supId":4484614,"prevId":4485159,"content":"<u>thanks</u>","text":"<u>thanks</u>","html":"<u>thanks</u>"},{"id":4485159,"gmtCreate":1622206525893,"gmtModify":1680791588716,"authorId":3577220211671569,"author":{"id":3577220211671569,"idStr":"3577220211671569","authorId":3577220211671569,"name":"ZacN","avatar":"https://static.tigerbbs.com/4b39e21f419b5bf9c135c152e2e2b227","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.11.22","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":3563607262597606,"repliedAuthor":{"id":3563607262597606,"idStr":"3563607262597606","authorId":3563607262597606,"name":"Shininglight","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"objectId":134952414,"type":1,"supId":4484614,"prevId":4484707,"content":"Done","text":"Done","html":"Done"},{"id":4484707,"gmtCreate":1622203785853,"gmtModify":1680791581774,"authorId":3563607262597606,"author":{"id":3563607262597606,"idStr":"3563607262597606","authorId":3563607262597606,"name":"Shininglight","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134952414,"type":1,"supId":4484614,"prevId":0,"content":"ok. me need comment <u>too</u>","text":"ok. me need comment <u>too</u>","html":"ok. me need comment <u>too</u>"},{"id":4484614,"gmtCreate":1622203323164,"gmtModify":1680791580295,"authorId":3577220211671569,"author":{"id":3577220211671569,"idStr":"3577220211671569","authorId":3577220211671569,"name":"ZacN","avatar":"https://static.tigerbbs.com/4b39e21f419b5bf9c135c152e2e2b227","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.11.22","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":134952414,"type":1,"supId":0,"prevId":0,"content":"Reply to my comment please","text":"Reply to my comment please","html":"Reply to my comment please"}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":30,"commentSize":24,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}