Stocks quotes in this article:
SQ,
PYPL,
MC,
V,
WIX
Square (SQ) shares are continuing a multi-day push after announcing it would buy Weebly for $365M in stock and cash. This shouldn't come as a huge surprise. The company has been offering a platform for small businesses to accept online payment for some time. The move to acquire Weebly makes sense, a vertical integration of sorts. A move for SquareSpace or Wix (WIX) may have expanded the power of the purchase, but the cost was likely prohibiting a deal.
Strong earnings from names like Visa (V) , Mastercard (MC) , and PayPal (PYPL) should bode well fundamentally for Square. This has been a volatile earnings season thus far, so little can be anticipated in how Square's shares will react. My focus is on the longer term. I'm a buyer on weakness but hesitant to add over $55. That's been a spot of selling.
Much has been made of Square's involvement in cryptocurrency. Look, it's a bonus if anything comes from it. Plain and simple. It's not the company's focus and the core fundamental story stands on its own. Crypto may add up to $50 million in revenues over next 12 to 24 months, but it's not a factor in my bullish view. I'm looking for shares to push into the $55-$60 range this year. On the downside, I see low $40s as support and a very attractive area to get aggressively long.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.
Email
Email sent
Thank you, your email to has been sent successfully.
