Crowder Securities Limited - Is Square Stock Worth Buying As Analysts Wait for Q3 Earnings?

WAN CHAI, Hong Kong - Oct. 20, 2023 - PRLog -- One concern for digital payment processor Block is the increasing trajectory of Square's consumer Cash App. There's also the Bitcoin cryptocurrency and the Afterpay acquisition. In addition, Square is facing increasing competition on a variety of fronts.

SQ stock's third-quarter earnings are due on November 2.

Meanwhile, Square stock has fallen 31% in 2023, while the Nasdaq composite has up 29%. Furthermore, certain technical assessments for SQ stock have deteriorated.

"Consensus is modeling a 16% to 17% yearly compound growth rate in gross profit for 2023 to 2025," said Bank of America analyst Jason Kupferberg in a recent note.

He went on to say: "Even if this proves to be modestly too high, we believe this growth profile justifies a materially higher multiple. With the stock at a sadness valuation, we believe the board ought to beef up its operational oversight, to ensure that SQ retains its tradition of product inventiveness, while executing on the evolving distribution model at Square."

Alyssa Henry, the CEO of Block's merchant Square business, was recently removed by Block founder Jack Dorsey.

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