Square Inc.

Square delivered a below-par result in its recent quarter which has resulted in some correction in the stock price. However, it had a number of new additions that could become important future drivers. In the third quarter, the company introduced Square Invoices Plus, a new subscription product with more advanced features designed for larger and more complex businesses. Square also continues to broaden its geographic reach, launching a full suite of integrated Seller tools in France in September, its most comprehensive market launch to date. Square’s integrated suite of products, including Square Point of Sale, Square for Restaurants, Square Online, Square Terminal, Square Stand, Square Reader, and more, now allows French businesses to sell online and in person. Moreover, they launched Cash App Pay in the US, a new contactless payment method for online and in-person transactions. People can use Cash App Pay to pay with their Cash App account at Square Sellers by scanning a QR code or tapping a button on their mobile device at checkout. While we are optimistic about the company, we are conservative in our forecasting given its high valuaation and give it a ‘Hold’ rating with a revised target price.