Amid gains of other fintech companies, Square stock has now added nearly 150% in its year-to-date record, rising with other fintechs.
On Thursday, the stock price of American financial services provider, Square Inc (NYSE: SQ) jumped more than 5% in early trading. Later in the day, SQ was still up over 2.5% and finally closed up 1.22% to $155.61. Share prices of other fintech companies are also on the rise. Today, however, SQ is 0.29% down, at $155.16.
According to a CNBC report, Mizuho analysts noted nine payment stocks on Thursday, stating that they were “most enthused” about SQ and four other stocks. The analysts are more interested in the five stocks based on the recent increases in their market shares. The other payment stocks apart from Square are PayPal Holdings Inc (NASDAQ: PYPL), Visa Inc (NYSE: V), Fiserv Inc (NASDAQ: FISV) and WEX Inc (NYSE: WEX).
Square Stock Jumped Along with Other Fintechs
Digital payment giants Square and PayPal added the most gains out of the five companies. Square’s stock has been surging for the last twelve months, increasing more than 151% in the period. Since January, SQ has added more than 148% and nearly 92% in the last three months. In addition, the company rose 19.84% in the past month and 0.333% in the last five days.
Similarly, PayPal has also been rising over the past year. In the last two months, PYPL added 87.38% and almost 89% in its year-to-date performance. In addition, Visa stock has also been increasing and has gained over 12% in 2020.
Square and PayPal
Like many other companies, Square also suffered from the negative effect of the pandemic. However, Mizuho Securities predicts that the company’s Cash App may achieve quadruple gross profits.
In support of the Mizuho argument, Nancy Tengler, the chief investment officer of Laffer Tengler Investments said the analysts are “absolutely correct on fintech.” Speaking with CNBC’S “Trading Nation,” she stated that the use of “touchless payments” have increased significantly. In addition, she said:
“In the case of Square, the revenues are growing in the mid-40% range, the balance sheet is sound and solid with more cash than debt and they’ve started to put earnings on the board….”
The founder and financial advisor at New Street Advisors Group, Delano Saporu expressed his interest in both PayPal and Square. After saying that he “actually” likes the two companies, he added:
“The continued rise in digital payments is something that we’re going to see a lot more of, especially in the new normal where we’re trying to stay away from each other as much as possible.”
“When you are thinking about Venmo for PayPal and then CashApp for Square, they built a strong ecosystem, especially with young users who are really looking at that digital payments space, who are really entrenched in that.”
Currently trading at $157.38, SQ is up 1.14 over its previous close of $155.61. Also, PYPL is trading at $203.23, a 0.54% loss over its previous close of $204.43.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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