Square stock fell on Tuesday as profits for the December quarter exceeded estimates, while net income and gross payments volume were slightly lower than expected, despite Bitcoin transactions through the Top-Line Boosting Cash App In Square’s Earnings Report, The Company Also Revealed A New $ 170 Million Investment In Bitcoin In Addition To Its Previous $ 50 Million Purchase

San Francisco-based Square (SQ) earnings were 32 cents per adjusted share, up 39% from a year ago period Gross margin increased 52% to 804 million dollars, up slightly from the estimate of 801 million dollars

Square said revenue jumped 141% to $ 3.16 billion Cash App users are increasingly buying and selling digital Bitcoin cryptocurrency

Analysts polled by Bloomberg had projected a profit of 24 cents on net income of $ 3 17 billion Excluding Bitcoin, Square said fourth-quarter revenue rose 23% to $ 1.4 billion Square gets low margins thanks to Bitcoin Cash application transactions

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On the other hand, Square could make a huge profit from its $ 50 million purchase of Bitcoin in October Digital currency has skyrocketed since October and recently soared on Tesla (TSLA) $ 1 5 billion investment Regulators, however, could crack down on cryptocurrency

Square stock fell 44% to almost 24,520 in extended trading on the stock market today In Tuesday’s regular session, Square stock fell 43%

As expected, Square did not provide a financial forecast for 2021 Square stock surged in 2020 as investors focused on growing its consumer treasury app They ignored concerns about exposure from Square actions to small businesses and restaurants that could close due to the coronavirus pandemic

Square revealed it ended 2020 with 36 million Cash App users, up from 30 million at the end of June

Square said the gross payment volume, or GPV, of merchant customers rose 92% to $ 32 billion Analysts projected a GPV of $ 32 billion amid Square’s restaurant exposure and small business GPV of traders increased by 6%

Adjusted earnings before interest, taxes, depreciation and amortization, called EBITDA, increased 57% to $ 185 million Analysts expected adjusted EBITDA of 1,376 million

As for Square’s earnings report, the company had a relative strength score of 92 out of a possible 99, according to IBD Stock Checkup

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing

2:16 p.m. ET
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Square stock

World News – CA – Square Stock Falls As Income, Payment Volume Lacks Views Amid New Bitcoin Investment

Source: https://www.investors.com/news/technology/square-stock-sq-square-earnings-q42020/