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NYSE:SQ

Block Inc (SQ)

74.69
-0.09 (0.12%)
as of Jun 18, 2026, 11:47:42 pm Market Open.
242 watching
0
BUY
Great company. One of his favourite names. The concern is valuation. It's beyond priced for perfection. He's looking for a better entry point. Moving into e-commerce. Caters to both consumers and businesses. Expect continued rapid growth in 2021 and beyond.
DON'T BUY

A very attractive sector with secular growth. People are moving away from cash. Visa would be a better choice. There are better opportunities out there since the stock has run up so much.

BUY
They reported today which pushed the stock up 13%. SQ just introduced Cash App which allows small businesses to transact with each other, and sales in this segment are way up.
DON'T BUY
They have made a very big impression through their cash-app. It gives users the ability to transact smaller amounts. No one wants to touch cash during COVID which has helped them do well. The POS side of the business has not done as well, but the stock has still done well. A great deal of the benefit of the future is already priced in. Many of the fintech stocks are a little over-valued.
BUY ON WEAKNESS

It has been hot during Covid. Their peer-to-peer payments app is arguably better than PayPal's. It's up 185% in the last 6 months and is now pricey. If the stock pulls back after it reports in 2 weeks, buy some.

BUY ON WEAKNESS
He took profits. Has come down as the market has come down. If you can get it with a $160 handle, he'd buy.
BUY
Fintech continues to be attractive. Pay a premium, at 206x forward earnings, but a very strong growth rate. 20% growth longer term, and earnings are starting to accelerate. Looks attractive.
BUY
Is one of 7 growth stocks where investors don't care about earnings during this pandemic, so buy them: Square empowers the little guy, small business. Investors worship this stock more than SQ's actual users. The closures of its clients during Covid didn't turn out to be a problem. In fact, the stock keeps roaring. It's a non-bank alternative to banks.
BUY ON WEAKNESS
He took profits recently. He targets $155. 60% of gross profit comes from transaction fees and it boasts a stunning 37% profit margin. It was trading at a discount to its peers, but the stock soared when it reported it was benefitting from the lockdown and e-commerce. Buy it at $130.
PAST TOP PICK
(A Top Pick Aug 23/19, Up 162%) Fintech and payment processing is the way of the world. SQ has been crushing it. When it outperforms, you have to rebalance. He wouldn't chase it now, but happy to hold.
BUY ON WEAKNESS
With a high multiple you're asking if the market is anticipating too rosy a future for this company, does the market have it right, or should it be more expensive? Transactions are down. It is the future, but pricey. Might buy it on a general market pullback of 10-25%.
PAST TOP PICK
(A Top Pick Jun 24/19, Up 42%) This is an example of frothiness in the market. Despite being up more than 50% this year, their earnings outlook for 2020 have been cut in half and by 25% for next year. This company has become detached from fundamentals. It is over-price. He sold it last month.
DON'T BUY

SQ-N vs. PYPL-Q. The broader payment processing space is great but he prefers V-N. These are expensive stocks. PYPL-Q has abroad offering so probably the better one to buy. He would say that you should look at the best-of-breed, V-N. Paypal would be the preference between the two, however.

PAST TOP PICK
(A Top Pick May 21/19, Up 20%) Tech has done surprisingly well very well, though some don't deserve to be, including Square. Its earning estimates are down 50% this year and 25% next year, and yet the stock is up. He actually sold this two weeks ago on a high valuation basis.
DON'T BUY
They reported last week and pulled guidance for the rest of the year. It's a POS vehicle, so with people staying at home there is less activity here. But they are a leader in fintech. Also, SQ will be in the loan business soon. But Square has never been profitable despite an $18 billion market cap. Why haven't they made a profit yet?
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