Square: Extreme Valuation For A Firm Facing Tough Competition

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About: Square, Inc. (SQ), Includes: FISV, INTU, MA, PYPL, V
by: Navi Bains
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Navi Bains
Long-term horizon, Growth At Reasonable Price, Long/Short Equity
Summary

Square is a diversified financial services firm that focuses on individuals and small to medium sized businesses.

Their Cash App ecosystem has benefited from the COVID-19 epidemic, although their Seller ecosystem has struggled.

A hard look at their financials shows that Square is extremely overvalued, even with optimistic projections.

Summary

Square (SQ) is a good company with a recognizable brand. They offer a diversified list of products and services in the financial services industry. The problem is they face very strong competition