Stockideas

Block, Inc.
(NYSE:SQ)
Block, Inc.

Square, Inc., together with its subsidiaries, creates tools that enables sellers to accept card payments; also provide reporting and analytics, and next-day settlement. It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts Europay, MasterCard, and Visa (EMV) chip cards and Near Field Communication payments; Square Stand, which enables an iPad...
Founded: 2009
IPO date: 2015-11-19
IPO price: $9
Full Time Employees: 5,477
CEO / Founder: Jack Dorsey 
CFO: Amrita Ahuja 
Sector: Technology
Industry: Software-Infrastructure
Next Earnings Date: 2023-02-23
Stock price: $68.16 (-1.46%)
sq
By: tachyon Very lazy guy   💬 23   
   on Nov 23, 2022

This is a buy. Cashapp is only getting popular everyday. $sq


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sq
By: tachyon Very lazy guy   💬 23   
   on Nov 17, 2022

young people still need a way to learn how to invest. and companies like $hood $sq $sofi does provide a way to make it easier for people to learn about finance. my guess is they're still good for long term.


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Square is rebranding itself as 'Block'
By: ssmlee04 Community Lead :))   💬 98   
   on Dec 03, 2021

https://www.engadget.com/square-rebranding-block-224240493.html

“The name has many associated meanings for the company — building blocks, neighborhood blocks and their local businesses, communities coming together at block parties full of music, a blockchain, a section of code, and obstacles to overcome,” the company said in a blog post.
The blockchain made the company do it.

$SQ


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Twitter CTO Parag Agrawal will replace Jack Dorsey as CEO
By: ssmlee04 Community Lead :))   💬 98   
   on Nov 30, 2021

https://www.cnbc.com/2021/11/29/twitter-ceo-jack-dorsey-is-expected-to-step-down-sources-say.html

Twitter CEO Jack Dorsey is stepping down as chief of the social media company, effective immediately. Parag Agrawal, Twitter’s chief technology officer, will take over the helm, the company said Monday.

Bad news for $twtr I always feel like Twitter is valuable because Jack Dorsey is there, if he's gone I am not sure if the valuation can be justified. The price action today for Twitter also seem to say that. Twitter price went down 12% from high of the day and it is literally full 7.5 hours of selling.

Also, it's not apparent what else Twitter can still do from now on. I know the changed their web UX a bit and added some tipping functionality but other than that I don't see much changes in the couple of years. And, a lot of times, founder leaving is like innovation would stop right there. Maybe it will continue to be a good business but that's the end of their innovation story.

This might be a good news for $sq now he can focus on Square full-time though if he likes.


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Marqeta retrospective
By: ssmlee04 Community Lead :))   💬 98   
   on Nov 24, 2021

Those metrics are taken from their S-1. Their biggest client is Square and they also have a lot of disruptor clients like Instacart / Doordash / Klarna / Coinbase / Affirm / Uber / Sezzle / Afterpay... etc. So they're like the go-to tools for companies that want to issue their own cards.

Companies use the Marqeta platform to launch and manage their payment card programs. Marqeta works on their behalf with card networks and issuing banks to issue cards, authorize transactions, and communicate with settlement entities.

Basically, the use case for companies using Marqeta is you are able to issue virtual cards for your users depending on your use cases. Take Square $SQ for example, they have CashApp and within the app their users are able to purchase stuff using some virtual debit cards, and that's done thru Marqueta. Also, for Doordash $DASH, their drivers are able to pay with virtual cards with the funds being temporarily on hold so that you won't be in a scenario where bad actors would just walk away with your food. And all those operations needs companies like Marqeta to work.

https://i.stack.imgur.com/auLRf.jpg

https://i.imgur.com/CZXXHqE.png

Also, they're in some sort of share exchange agreements with lots of their clients like Square or Uber... etc. The thing is Square accounts for around 50% of their business and it would be bad if Square decide that they want to issue their own card later. I don't see this as a high likelihood event but for them to rule out this possibility they simply just let Square own a small percentage of their business, and that means if Square wants to enter this space and develop their virtual cards they would need to weigh in on the Marqeta equities they own, and that reduces the likelihood of Square developing their own service and becomes a competitor.

But still, keep in mind that Square still accounts for like 50%+ of their revenue. If Square goes crazy and enters this virtual card business tomorrow then you shouldn't be surprised to see this stock price gets slashed in half right after.

https://i.imgur.com/RjYzOAw.png

A brief look at the S-1 income statement:

Their gross profit margin is around 50%, this is slightly lower than SaaS companies but this seems like a norm for payment companies. Also since they just went IPO their compensation and benefits are high right now, but hopefully, as time goes by the expenditure in this category could go to industry norms.

The good news about them is their company is growing like 100% yoy in revenue. Their transaction volumes from BNPL is going up like 300% yoy and that might continue to be the driver for growth in the next while.

Marqeta is up 9.87% on Wednesday's trading session. That might be a sign of bottom reversal.

Source: https://www.sec.gov/Archives/edgar/data/0001522540/000119312521162113/d64065ds1.htm $MQ


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BNPL is going to disrupt credit card businesses hard
By: ssmlee04 Community Lead :))   💬 98   
   on Sep 19, 2021

I'd be cautious if I am investing in those traditional credit card companies. Affirm (and Peloton) has proved to us that people are willing to pay a bit more for payment installments and then they do not need to worry too much about late payment fees and all kinds of hidden fees in those fine prints. Think about all those times where you call credit card companies and ask them about something that shows up on the statements? Those are awful experiences that I do not think deserve to exist in 2021.

For those BNPL services, they're mostly modern tech companies with machine learning capabilities. They can say no to you in the first place so that you don't need to be in those kinds of awkward situations where you need to call them and then argue with them. And if you can have almost the same shopping experience on, say Amazon or Peloton, with two payment methods that one is less of a problem to you and it's likely you'd choose one over another. Besides, with BNPL you can leverage more efficiently to achieve your financial goals.

$axp is probably ok because axp is not really a card company but more like a service company in my opinion. Visa and MasterCard probably not so much.

short / neutral $V $MA $AXP. long $AFRM $SQ


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Square Q2 earnings results
By: ssmlee04 Community Lead :))   💬 98   
   on Aug 28, 2021

https://s27.q4cdn.com/311240100/files/doc_financials/2021/q2/2Q21-Square-Second-Quarter-Shareholder-Letter.pdf

They're growing in all areas of their operations. Their crypto revenue is growing a lot this year. Also their SaaS part business is also growing at about 100% yoy.

Their domination in SME pos space is pretty solid.

https://i.imgur.com/ShvIxJy.png

$sq is a buy whenever it pulls back.


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Square Q1 2021 earnings result
By: ssmlee04 Community Lead :))   💬 98   
   on May 09, 2021

Great earnings. One of the most innovative earnings call / companies in this era I'd say.

TL;DR: long SQ.

Earnings report summary:

  • Q1 Revenue is growing 365% yoy. Q1 revenue without bitcoins are growing 50% yoy. This is pretty impressive.
  • Subscription based revenue is growing around 88% yoy. This is insanely high and that means users need them and they're in some sort of product market fit for sure.
  • And they're profitable again this quarter! this is the 3rd straight quarter they're making a profit.
  • Cash App gross profit is up 270% yoy.

Those numbers are fantastic. And even if you remove all the Bitcoin revenue you would still see a company that's growing 50% a year. This is pretty remarkable for a company doing POS considering it's harder to scale than a typical SaaS company where you can horizontally scale pretty easily, but for POS if you need scale you would need to scale your number of clients linearly.

https://i.imgur.com/PPQ4pfm.png

Tidal:

In March they announced they were going to acquire Tidel. At that time I didn't know what that is about. And the market doesn't seem to like it too much and the stock price has been pretty sluggish since then. But in this earnings call they give you more ideas about why they did it and why is that good.

Square, in a nutshell, wants to be the one-stop-shop for small and medium-sized enterprises for payment service, tax services... etc so that the SMEs can focus on what they do best and pay Square a small fee to get rid of payments, tax and all those kinds of issues. And that seems to be true for artists as well. Artists also need to go through the same process like opening a concern, selling tickets, selling T-shirts and music... etc and it seems the problems artists are facing are pretty similar to those the small businesses are facing. And acquiring Tidal is a step forward to tap into the art industry and potentially create an ecosystem / solution like the Cashapp.

Sellers ecosystem:

  • Square Messages. This is a way for sellers to reach buyers using text messages or emails more efficiently (this could be a good news for Twilio assuming they're using Twilio's service to do that). They see this is something will help sellers build more meaningful relationships with their buyers, which has become increasingly important in an omnichannel world.
  • Square started a loan service a while ago. And since they know the cashflows of your business they're able to lend you money with pretty low risk. . In the first quarter, Square Capital facilitated $531 million in PPP loans, providing access to a financial lifeline to more than 57,000 small businesses. So they're doing what a bank couldn't do for you, that is, lend you money when you need your money the most. In the long run business would all go to Square and move away from those big banks that, in my opinion, is a high probability event that would happen over time.

https://i.imgur.com/HBCDq87.png

Cash App:

  • Introduced Square Loyalty. Which is the rewards program where you can collect / manage your points when you do shopping online.
  • We see continued engagement from existing customers.
  • The bitcoin revenue went up a lot every quarter.

Cashapp is good, as usual. The ecosystem is up and now you can buy cryptos, buy stocks with fractional shares in the app. And all the young people are there. If I want to bet there's a company that's going to be the banking of the future this one might be it. The trending seems to be up.

https://i.imgur.com/JaSbFyc.png

10-Q: https://d18rn0p25nwr6d.cloudfront.net/CIK-0001512673/2a13e66d-6c6d-4582-b88e-b63f9f1e1ef6.pdf

Shareholder letter: https://s27.q4cdn.com/311240100/files/doc_financials/2021/q1/Q1-2021-Shareholder-Letter.pdf

https://i.imgur.com/WsP6fHh.png


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Bitcoin reached 60,000 level now and is consistently reaching all time high every couple days
By: ssmlee04 Community Lead :))   💬 98   
   on Mar 14, 2021

Bitcoin is moving up at a consistent pace and reaching all time high once every few weeks. And it reached $61,000 today. It's most likely we would see blockchain stocks like $mara, $ncty, $riot, $sos going up again next week. $sq and $tsla is probably going to be good as well with their bitcoin exposure. Tesla purchased a lot of coins at $30,000 level and their investments on that batch is already up 100%. And that is about a couple hundred millions to 1 billion of gains on paper already.

https://i.imgur.com/AeK8byZ.png

https://i.imgur.com/VgKI9Aa.png

Keep in mind that it costs a few billion to build a gigafactory. And that means they just make 20-25% of the money to build another gigafactory (if they sell). And when bitcoin continues to go up then they can use that to build more factories and scale up their production efficiently that no other EV competitors can.

Square also has a lot of bitcoins. Also they have a large number of bitcoin enthusiasts and the Cashapp community is growing. And with Tesla and Square having a moderate weight in the indexes the outlook for Nasdaq and S&P500 is great for the next week at least.

Investing in $sq and $tsla for blockchain exposure makes sense because they're well-managed companies with a good reputation. What I don't understand is those who invest in companies like $ncty or $sos or others. There were blockchain companies going Kaizer Soze a few years ago when they claimed their founders went missing abroad or dead and then all the bitcoins on the accounts are lost because those companies cannot recover the coins anymore. And then the investors just lose everything. There's no guarantee that wouldn't happen again for blockchain companies in 2021, because human nature doesn't change.

And for mining companies like $sos they literally are just a factory running a lot of miners. And that's it. There's no guarantee if those companies would continue to exist in a few years because, in my opinion, it is not hard to setup a factory of minors to do that. You do not need talents to do that, you only need electricity and money to do it.

Also what I find interesting is if you think bitcoin is going to have a good future shouldn't you just invest in bitcoins directly? You can invest in companies investing in bitcoins for you but to me it's just like giving your money to others to let them gamble for you. But it seems a lot of people think that is a great idea in 2021.

So watch out when you invest in those blockchain companies. They're likely to continue to be good in the next while but be vigilant and only invest in the best ones, because if bad things happen you might lose everything but at least you'd feel less remorse than if you don't do your due diligence at all.

Cheers.


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Nasdaq minor crash
By: ssmlee04 Community Lead :))   💬 98   
   on Feb 26, 2021

Although Nasdaq retraced almost 1000 points in the past 8 days it actually only dropped 8% from the top. What's more concerning is a lot of good names like $sq or $aapl or $tsla or $amzn are already 15-30% from the top.

10yr bond rates hit 1.5% at a point today and that could be related to the selloff in major indexes. Asia is also not doing well at this time.

You'd see an interesting Friday tomorrow.

https://i.imgur.com/mzMgg8n.png

^IXIC


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Square earnings
By: ssmlee04 Community Lead :))   💬 98   
   on Feb 24, 2021

Square earnings numbers is honestly not very impressive. Their non-crypto revenue only grows about 20% you and their overall qoq revenue grow only a few percent.

But the good thing is their CashApp ecosystem is getting more adoption. Also, they're demonstrating the ability to innovate and establish their image as a one-stop-shop like coming up with payrolls or digital wallets that big financial institutions can't quite. In the future you might be doing everything financial by just using their app. In that regard, they're doing a fantastic job.

https://squareinc2020ir.q4web.com/files/doc_financials/2020/q4/2020-Q4-Shareholder-Letter-Square.pdf

Also worth mentioning they invested another 170m in Bitcoins. Since they're one of the go-to platforms to buy bitcoins this would continue to do well for them in the next while.

long $sq


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Square: In case you don't know you can buy bitcoins using their Cashapp
By: ssmlee04 Community Lead :))   💬 98   
   on Nov 21, 2020

https://www.nasdaq.com/articles/beneath-the-surface-of-square-incs-nyse%3Asq-huge-revenue-beat-2020-11-19

According to them their bitcoin revenue was USD $1.63b for the quarter, and its bitcoin costs were USD $1.60b. Even though they don't generate too much profits from this operation this one seems like a good story for Cash App and the Cash App ecosystem. Also if bitcoins continues to go up the revenue from this one might get bigger overtime.

In the past if you want to purchase bitcoin you have to go to Coinbase or other crypto platforms to do that but you're limited to buying and selling cryptos there and the verification process is quite painful. With Cash App this is not the case anymore. This one is quite a game changer.

$SQ


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Jack Dorsey’s Square Invests $18 Million in Italy’s App Satispay
By: ssmlee04 Community Lead :))   💬 98   
   on Nov 19, 2020

https://www.bloomberg.com/news/articles/2020-11-19/dorsey-s-square-invests-18-million-in-italy-s-app-satispay

Square is expanding their operations in Europe. It is a good news for them.

$SQ


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Earnings this week
By: christopher lazy guy   💬 13   
   on Aug 04, 2020

https://i.imgur.com/V5d3z2l.jpg

$CHGG $TWLO $FSLY $ROKU $SQ $LVGO


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SQ
By: swingtradestocks lazy guy   💬 10   
   on Oct 08, 2019

Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that offers sellers to payment and point-of-sale solutions. It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards;


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SQ
By: tachyon Very lazy guy   💬 23   
   on Oct 03, 2019

square payments are everywhere on the street. .................................................................................................................


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SQ
By: swingtradestocks lazy guy   💬 10   
   on Sep 13, 2019

Love this fin-tech name as its is getting priced at attractive levels now close to 55 zone. Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that offers sellers to payment and point-of-sale solutions.


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