Why #Squarepocalypse Isn’t a Real Concern to Square Stock

On Jan. four, Square (NYSE:SQ) chief executive officer Jack Dorsey converted 100,000 Class B shares into Class A shares and then sold the Square stock at an average price of $219.53.

Why #Squarepocalypse Isn’t a Real Concern to Square Stock

The stock sale is actually part of planned sales by the billionaire co founder. He soon started the weekly sales of 100,000 shares on Nov. sixteen. Since then, he has sold 700,000 shares through his newest divestiture on Jan. 4.

Estimating the whole sales, he likely generated $160 million in pre-tax proceeds. Heck, even billionaires have bills to pay.

When you’re thinking about offering based on these planned sales, don’t. Square’s got lots of space to run in 2021.

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Square Stock Hits $300 Square stock is today trading at over $240. Since Jan. 1, the stock is up more than ten %.

And that is on top of the 245 % gains it realized in 2020, something I had a suspicion would occur. Here’s what I published on Jan. 3, 2020:

Since Q3 2017, Square’s GPV [gross payment volume] from sellers with an annual GPV of over $500,000 grew 700 basis points to 27 %. Meanwhile, those sellers with a yearly GPV of less than $125,000 dropped 700 basis points to 45 %. At exactly the same time, sellers with between $125,000 and $500,000 in GPV increased by hundred basis points to 28 %. Precisely why is it critical? It shows that the company’s revenue has become a lot more diversified; it today benefits from payment processing across organizations of all sizes.

How’s it doing a year later on this front?

In the third quarter of 2020, sellers with yearly GPV greater than $500,000 accounted for 30.6 % of the $28.8 billion in seller GPV. That is up 270 basis points from the previous 12 months. Sellers with yearly GPV between $125,000 and $500,000 were $8.7 billion in Q3 2020, or perhaps 10.1 % higher than in the third quarter a year earlier. These 2 groups accounted for sixty one % of seller GPV in Q3 2020, 500 basis points higher than the preceding 12 months.

Without a doubt, sellers with annual GPV less than $125,000 still accounted for 39 % of overall seller GPV, although it shows bigger companies’ acceptance fee, that is critical to the ongoing growth of its.

To get to $300 sooner in 2021, two things have to keep growing: Cash App, its finance app, and Square Capital, its lending platform.