I bought some SQ when it was below $30, Their market cap at that time was ~10B. It has grown rapidly since then and its current valuation is 25B.
I'm trying to evaluate if SQ has more room to grow for the next 5 years and beyond.
Would you guys share your thoughts?
I personally feel it has lot of hurdles to grow from here -
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Paypal has acquired izettle, which is more widely used than Square in Europe. So, growth into Europe seems questionable since the izettle has a significant headstart there.
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From payments perspective, while Square still dominates in the POS systems, Stripe seems to be preferred by large corporations like Amazon and Expedia.
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From Cash App perspective, while CashApp is convenient to US market, features like instant transfers are already the norm in Europe and other nations.
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Also, CashApp's bitcoin feature just seems like a short term revenue generator, and doesn't look like a sustainable revenue stream.
The main growth prospect seems to be to dicersify their revenue to subscription and services, insteas of just relying on payments.
But, I am not sure if just the services and subscriptions growth can justify 25B market cap
Submitted August 06, 2018 at 10:08AM by fullmetaleng https://ift.tt/2nfQTNC
