I'm conflicted on pulling the trigger for Square (SQ)
Its a brand new listing, it IPO'ed in November 2015.I see this service in use everywhere! Every single transaction involving a mom n' pop retailer, food truck, farmers market, non-uber taxi driver, and home repair contractor that I've used in the past year was processed by square. I'm sure you've seen this in use too, buying something using your credit card where the vendor swipes your card through a small square plugin to a cellphone, or a sleek white tablet cash register that spins around for you to sign with your finger. Revenue continues to grow
| Year | Revenue |
|---|---|
| 2012 | $203M |
| 2013 | $552M |
| 2014 | $850M |
| Q1-Q3 2015 | $892M |
On the other hand, Square has yet to be profitable.
| Year | Profit |
|---|---|
| 2012 | $-85M |
| 2013 | $-104M |
| 2014 | $-150M |
| Q1-Q3 2015 | $-126M |
Square made a deal with Starbucks that represents about ~10% of revenue. They will cease to do business together in Q2 2016. Second quarter is also when the holding period for early investors expires, then they are allowed to start trading their shares. Currently, only 8% of the total shares are being publicly traded. If more shares hit the market, I would expect the values of the shares to decrease.
What do you think. Would you buy SQ any time soon?
Submitted January 07, 2016 at 04:16PM by baconsaurus-rex http://ift.tt/1Rn7Ssj
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