Square tumbles into earnings here’s why it’s still a long-term bet

Square tumbles into earnings here’s why it’s still a long-term bet

Square is getting crushed ahead of its earnings report.

The stock fell more than 5% on Thursday afternoon heading into the company's after-the-bell release. PayPal, which posted a blowout quarter on Wednesday, was also under pressure.

Square, a payments app company, is expected to report 17 cents a share in profit, according to FactSet, swinging from a loss of 2 cents a share in the same March-ended quarter last year. Forecast sales of $3.3 billion would mark more than 140% growth.

Despite the day's weakness, one strategist said it's poised to continue to benefit from high demand.

"This company fits squarely in the middle of the technological transformation that's happening within our society. They were able to pivot, adapt and grow during this pandemic, even though small businesses weren't using their app," Michael Bapis, managing director at Vios Advisors at Rockefeller Capital, told CNBC's "Trading Nation" on Thursday. "We believe there's still upside to go."

The shares have fallen nearly 23% from a February record high, but remain more than 220% off a low last May.

"They have quality management, a very high customer satisfaction rate. And we think this Cash App will continue to drive cash flow in the foreseeable future as our whole society