Square’s stock jumped 4.2% in the markets on Friday after Citigroup called Square a “‘disrupter’ that can convert ‘micro’ and small merchants to its payment technology.” This is a huge jump since the stock only increased by 4% last year. The article discusses how Citigroup views Square and how Citigroup has encouraged investors to invest in the company due to its market leader status. For those that do not know, San Francisco-based Square makes credit card readers that plug into mobile phones and tablets. Usually known for sticking to the small business market, it is starting to attract big business clients and has expanded into providing financing and banking loans to small businesses. Analysts estimate that Square’s Q4 revenue to increase by 20%, but I believe this may be a bit of a conservative estimate. I believe that Square will probably be around the 25% increase range as the usage of these mobile card reader products has quickly grown into many businesses around the country and the world.
Article link: http://www.investors.com/news/technology/citigroup-initiates-square-at-buy-ahead-of-earnings/
2 thoughts on “Square Stock Soaring Thanks To Citigroup”
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Yes, I’m seeing a lot more bigger merchants using Square, though majority is still in mom-n-pop shops.
I agree that a Citigroup cosign is a huge step forward for Square, because as many articles have been noting, it is important moving into the future that fintech and banking reach some compromises and integrate/help each other grow. Because companies like Square target small and medium sized merchants that Citigroup would not cater to anyway, I think it is beneficial for Citigroup to enough Square’s growth, because they are targeting different market segments, so can both work together with room for each to gain.