Square Mobile Payments’ Stock Hits A New High, Following Massive Third Quarter Earnings Report

Square Inc. Begins Trading On The NYSE Following IPO

Shares of mobile payments and financial technology company Square  surged to new highs in the trading days following its third-quarter earnings report last week. Better-than-expected adjusted top- and bottom-line figures, as well as a move to raise full-year guidance, have investors looking up.

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Highlighting the stock’s recent bullish run, Square finished the week with a market capitalization slightly higher than that of Twitter,  another company Square CEO Jack Dorsey leads. At the time of this writing, the market capitalizations for Twitter and Square are $15.01 billion and $15.2 billion, respectively, according to Reuters data. Square stock is up an impressive 237% in the past 12 months and 59% in the last three months alone.

 

As Square carefully pointed out in its third-quarter shareholder letter, its growth is accelerating. Total net revenue and adjusted revenue in Q3 were up 33% and 45% year over year, respectively. In Twitter’s second quarter, these same metrics were up 26% and 41% year over year.

 

Interestingly, a similar trend is occurring at Dorsey’s Twitter, albeit in a far less impressive manner. For Twitter, its year-over-year declines in revenue are improving. Twitter’s Q3 revenue was down 4% year over year, compared to a 5% year-over-year drop in Q2.

 

With both Square and Twitter trading higher after their earnings releases, it’s easy to see how investors are quick to applaud improving revenue trends.

 

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Written By: Tommy Lightfoot Garrett

Photographs are Courtesy:  AP

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