Square Widens Its Ecosystem With New Inventory Management Offering

A restless company always seeking to build its "ecosystem" of offerings for merchants, Square (NYSE: SQ) is rolling out a new suite of inventory management functionalities. This set of programs allows the company's Square for Retail point-of-sale clients to utilize such inventory tracking features as Easy Item Create and Smart Stock Alerts.

"For retailers, access to real-time insights into what products are available, when, and where, is key as businesses look to expand their sales channels," Square wrote accurately in the press release.

Two women in a wine shop using a tablet PC.

Image source: Square.

"Many sellers view inventory as one of the most frustrating and difficult tasks they encounter because building out a product catalog, counting inventory, and keeping stock at the right levels is traditionally a manual and labor-intensive process," the company added.

Square's impetus for the new offering doesn't come from pure altruism, of course. It's part of a years-long and continuing effort to win clientele and keep the company's services "sticky" in order for customers to continue using those services. After all, there are numerous point-of-sale hardware solutions and services on the market; the wider a product ecosystem, the more attractive the provider.

The company continues to grow at an admirable pace, and those apps and functionalities are helping it do so. In 2020, Square more than doubled its revenue on a year-over-year basis and was profitable for the second year in a row. Such performance has made it an extremely popular fintech title among investors.

Square essentially traded flat Thursday, an indication that perhaps the market is getting used to these announcements of new product modules. The S&P 500 index, meanwhile, sagged by 0.9% on the day.

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.

See the 10 stocks

*Stock Advisor returns as of February 24, 2021

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Square. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.