What happened
Shares of Square (NYSE: SQ) were rising this morning on seemingly no company-specific news. But investors may be pushing the fintech stock higher as the price of Bitcoin (CRYPTO: BTC) crossed over $50,000 on Sunday for the first time since May.
Square's stock was up by as much as 4% this morning and had gained 2.7% as of 10:57 a.m. EDT.
So what
Square users can already buy, sell, and store their Bitcoin through Square's Cash App, and CEO Jack Dorsey said last month that the company is working on a "decentralized financial service" that will tap further into the cryptocurrency market.
Image source: Square.
The recent jump in Bitcoin's price might have come after PayPal Holdings said that its U.K. customers will be able to buy, sell, and store cryptocurrencies starting this week.
Any positive news coming out of the crypto market has the potential to boost the share price of stocks that are building out cryptocurrency businesses, and it appears that this is what's happening with Square's stock today.
Now what
Square's share price has been on a roller coaster ride in 2021, but it has still gained about 25% year to date. The company reported its second-quarter 2021 results earlier this month, with earnings surpassing analysts' consensus estimates.
Additionally, Square announced that it's buying the Australian-based buy now, pay later company Afterpay for $29 billion.
With the company delivering strong financial results recently, moving further into the crypto market, and snatching up other companies to expand its fintech footprint, it's no wonder investors are generally optimistic about this company right now.
10 stocks we like better than Square
When our award-winning analyst team has 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.*
They 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 August 9, 2021
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bitcoin, PayPal Holdings, and Square. The Motley Fool recommends the following options: long January 2022 $75 calls on PayPal Holdings. 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.
