Is Square’s Value Justified?

Is Square’s Value Justified?

Square (SQ) is the classic story of a start-up disrupting a well-established business sector, in this case finance and credit. It targets millennials and Gen Z, and its strategy has been successful so far, as it has become a serious challenger to the old-world financial order. The stock has barely moved in 2021 but it is expected to post massive growth ahead, and could be a strong bet in the future.

SQ is a pioneer in the fintech space, operating in three major segments. Square, one of its products, helps businesses, majorly small retailers, and individuals engage in the digital economy. Sellers use SQ to reach buyers online and in person, to handle their business, and to close transactions. Overall, Square is pretty similar to Shopify (SHOP).

Cash App, its second product, started off as a peer-to-peer mobile payments network but has since evolved into a personal finance app which now offers banking, investment and trading options as well.