Stock Talk - Investment Decision - Square

Stock Talk

What got me interested in Square was that it recently got beaten down on a “bad” earnings report, but when I took a bit of dive into it, I saw some interesting items. They recently sold it’s online food delivery platform Caviar. It was a money loser and burning a lot of cash and to get $400 million back and getting rid of the cash burn meant to me that SQ would not be going cash flow positive. Next, SQ is a pure North American play. Very little in the way sales outside, so any of the trade war rhetoric doesn’t really play into SQ’s wheelhouse. Finally, the new Cash App appears to be a big money maker, especially in the crypto space. In this episode, I share my analysis of Square which you can check out below.