Wall Street Analysts Are Still in Love with Square


Aug. 3 2018, Updated 7:30 a.m. ET

Shareholder returns and stock trends

Square (SQ) has generated investor returns of 16.2% in the trailing-one-month period and 169.5% in the trailing-12-month period. The company’s share price has fallen 0.80% in the trailing-five-day period.

Peers Amazon (AMZN), Alibaba (BABA), Twitter (TWTR), and Facebook (FB) have generated investor returns of 73.7%, 22.9%, 102.6%, and 2.6%, respectively, in the trailing-12-month period.

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Moving averages

On July 30, Square closed the trading day at $69.85. Based on this figure, here’s how the stock fared in terms of its moving averages:

  • 22.5% above its 100-day moving average of $57
  • 10.9% below its 50-day moving average of $63
  • 4.3% below its 20-day moving average of $67

Relative strength index

For the last 14 days, Square has reported an RSI (relative strength index) of 60 compared to the RSIs of 64, 45, 23, and 27 reported by Amazon, Alibaba, Twitter, and Facebook, respectively, in the same period.

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A look at Square’s EBITDA

Square’s EBITDA fell 45% to $50.10 million last year. Analysts expect the company to post EBITDA of $254.16 million in 2019. Square shares are changing hands at a price-to-EBITDA ratio of 558.7x.

Understanding Square’s earnings and sales

The EPS of -$0.17 that Square posted last stemmed from its total revenue of $2.4 billion. Its revenue rose 35% in 2017. In 2018, its revenue is expected to be $1.9 billion, and its EPS are expected to be $0.46.

Market cap

Currently, Square is the smallest global Internet player in terms of market cap at ~$28.9 billion. Among its peers, Amazon has a market cap of ~$877.3 billion, Alibaba has a market cap of ~$497.3 billion, Twitter has a market cap of ~$32.3 billion, and Facebook has a market cap of ~$510.2 billion.


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