Square has been extremely volatile over the past year, acting as an ATM for bulls and bears alike. From a purely fundamental perspective, their revenue is directly correlated with the health of American small businesses. Fewer swipes results in fewer merchant fees. The same could be said of their lending product, which requires a healthy revenue stream in order to service.
Their revenue has also been inflated due to valuations and stock holdings of acquired companies in their portfolio.
Therefore, in a macro environment where growth is slowing, if not reversing, it is likely that their value, too, will do the same.
From a technical perspective, the stock failed to breakout higher through its former supply zone, and will likely need to drop several levels in order to find fresh demand. Short sellers may be especially vicious.
Short-term target: 65
Long-term target: 50
Their revenue has also been inflated due to valuations and stock holdings of acquired companies in their portfolio.
Therefore, in a macro environment where growth is slowing, if not reversing, it is likely that their value, too, will do the same.
From a technical perspective, the stock failed to breakout higher through its former supply zone, and will likely need to drop several levels in order to find fresh demand. Short sellers may be especially vicious.
Short-term target: 65
Long-term target: 50