Square Inc (SQ: US) is an American fintech that offers financial management and development solutions for companies of any sector and size. One of the fundamental characteristics that have allowed this listed company to evolve very positively in recent years is that its service contracts do not strangle its clients due to exclusivity clauses, but rather allow working with third-party technologies to promote savings time in the execution of processes.
Very connected with the world of startups and small companies, it has been very successful in its activity and its reflection is found in the positive evolution of its quarterly results, where the revenue has been increasing continuously. Although the net profit per share has had a more erratic behavior.
source: Square Inc earnings report
Revenue of $ 5.06 billion exceeded market estimates of $ 3.37 billion. The on-balance Bitcoin holdings of its clients contributed to the final result revenues of 3.51 billion dollars, compared to the revenue of 306 million in the same period of the previous year.
Through its “Cash” App, Square Inc achieved gross commission income of $ 75 million. The increase in cryptocurrency purchases during the first quarter of the year are the justification for the published figures.
Apart from this, Square itself reported last February that the company had bought about $ 170 million in Bitcoin, 5% of its total cash.
One of the main reasons for the increase in turnover, apart from operations with cryptocurrencies, was the reopening of the main economies worldwide that motivated the increase in the seller's GPV (Square's key revenue metric, measures the total amount in dollars of card payments processed by customers using Square's payment system, Square receives 2.6% of transactions), from 144% during the month of April, a sign that "physical" businesses began to bounce back in this quarter.
Technical situation of the company
From the lows of March 2020, Square Inc reached a new all-time high at $ 283 per share, which was a growth of 770%. Although the volatility over the technology sector in general has affected the price since then, correcting up to 30%.
Square has managed to stay in a sideways range with support at $ 200 per share. Its EMA200 acts as dynamic support, as the RSI indicator approaches oversold levels of 30. Buy opportunity?