27 days ago • Posted by William Ramstein
Square's Cash App sees solid, but falling gross profit growth
Square shares are down 4.4% since reporting 4Q earnings on 2/23, underperforming the S&P 500 slightly. Big March stimulus should temporarily provide a boost to Cash App growth; Strong aggregated credit and debit card data, particularly in Food & Drink and Retail, which collectively represent 46% of gross payment volume (GPV) in the Seller segment; and the average price of bitcoin rose 168% q/q in 1Q vs. 59% in 4Q, further fueling the Cash App business.
Source: BoA Research