Square’s impressive rally continues
Payments company Square (SQ) has had an incredible year. The stock surged 10.8% on Tuesday, September 25, after Nomura Instinet analyst Dan Dolev likened the stock to FANG[1. Facebook, Amazon, Netflix, and Google] stocks.
Dolev said Square is disrupting the payments sector, just like FANG stocks disrupted the technology sector. The stock has risen 164.6% year-to-date.
Dolev has increased his price target for SQ stock from $86 to $125. Square closed at its all-time high of $95.35 on Tuesday. The stock has risen a staggering 642% since going public in November 2015.
Square’s revenue could keep going up
Square currently has a market cap of $39.1 billion, which is much higher than Twitter, Jack Dorsey’s other company, with a valuation of $22.1 billion.
Technology stocks with massive growth potential have been rewarded despite high valuations. Square is no different. Square’s revenue growth has been growing over the past few quarters, as you can see in the above graph.
Analysts expect Square’s revenue to continue to grow at a similar pace over the next few years as the company expands further. Dolev said the company is innovating at a rapid pace, which bodes well for the company.
On Tuesday, Square launched a payroll app that will let employers approve time cards and pay employees.