Square Review

Square Stock Saw Big Gains, But Can It Continue?

January 10, 2018         By: Steven Anderson

Right now, Buckingham—by way of analyst Chris Brendler—says that Square is a stock to buy, and after the stock better than doubled in 2017 with a 154 percent gain, and an 18.7 percent gain just last week, it’s not hard to see this is a popular piece of investment right now. Big gains often come with suspicions, though, and some are wondering if Square’s big gains can continue.

Square made a name for itself by opening up credit card processing to businesses of all sizes, particularly the smallest ones who could take credit cards just about anywhere there was access to an internet connection. That’s part of what gave Square its strength, and even contributed to its most recent “buy” rating from Brendler.

That’s where Brendler steps in and notes that Square’s got more than one trick up its sleeve. We’re still in the very earliest stages of several new advances, and Square’s software solutions are starting to ramp up accordingly. He’s laid a price target of $42 per share on Square stock, but thanks to the recent gains of last week, it’s already almost there.

Square has already seen major gains since its first public launch back in 2015. The biggest gains came in at the end of 2017, though, when the company had posted a hefty four quarters of major gains. Gains sufficient, in fact, to destroy Wall Street estimates, beating said guesses by at least 40 percent every quarter.

With gross volume continuing to rise, and even one of the most aggressive price targets yet a gnat’s whisker from being achieved, it’s safe to say that one of the original leaders in mobile payments will continue to lead. It’s done a good job of innovating in the space, allowing it to outpace even the various competitors.

While certainly, Square can’t continue to lead on the strength of its original market proposition—thanks to Venmo and various other peer-to-peer (P2P) payments systems out there, Square isn’t the only way to take a payment at a farmer’s market or the like any more—Square has foreseen this problem and worked accordingly. That makes it a very attractive item, and a likely continuing leader in the mobile payments space.