UPDATE: Square stock rockets toward third straight day of double-digit percentage gains
Shares of Square Inc. (SQ) are up more than 11% in Thursday trading and on track to post double-digit gains for the third-straight day after the Senate approved a stimulus package that aims to provide some relief for small businesses. "We believe Square is down, but not out," MoffettNathanson analyst Lisa Ellis wrote Thursday. "The next couple of quarters will likely be quite challenging...but we believe Square will recover: Square has >$3 billion in available cash - plenty to withstand the near-term COVID-19 'shock', Square's strong seller product offerings and resilience should enable the company to gain market share (and hopefully dispense with a few smaller competitors) over the next one to two years, and Square's consumer Cash App is far less affected by the crisis, so should provide some buffer to revenues." She maintained a buy rating and $70 price target on the stock in a note to clients. Square's shares have fallen 24% over the past month as the S&P 500 has lost 18%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 26, 2020 10:35 ET (14:35 GMT)
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