In this video, I will be going over Square's (NYSE: SQ) Q4 earnings report and explain why they disappointed me.
Square's Q4 earnings per share was $0.32 vs $0.24, with a revenue beat of $3.16B vs $3.09B. The company also announced that it invested another $170 million in Bitcoin, which is now approximately 5% of the total cash and equivalents on Square's balance sheet. Notably, Cash App keeps growing (generating gross profits of $377 million, up 162% year over year). Square did show that it can acquire customers for less than $5 (which is unseen in the Fintech world). Its seller side also grew year-over-year which is impressive since it was hit particularly hard by the pandemic. With that said, one could say that Square might be a good recovery play going forward.
10 stocks we like better than Square
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Square wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of November 20, 2020
Neil Rozenbaum owns shares of Bitcoin and Square. The Motley Fool owns shares of and recommends Square. The Motley Fool recommends Bitcoin. The Motley Fool has a disclosure policy. Neil Rozenbaum is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
