Square Stock Eyes Worst Day Since 2017

Square's Q3 revenue forecast fell short of expectations

by Patrick Martin

Published on Aug 2, 2019 at 10:03 AM
Updated on Aug 2, 2019 at 11:38 AM

Usually when we check in with Square Inc (NYSE:SQ), it's because of some lofty bull note or bullish activity in its options pits. Today however, Square stock is down 13.7% to trade at $69.92, after the payment processor's quarterly report. While second-quarter earnings and revenue exceeded analyst expectations, Square's third-quarter profit forecast missed its targets thanks to heavy spending on its Cash App business.

Analysts have rushed to adjust their ratings on the stock. Evercore ISI downgraded SQ to "underperform" from "outperform" while trimming its price target to $64 from $101. On the other side of the coin, Suntrust Robinson and Cowen upped their price targets to $75 and $76, respectively.  

This is pacing to be Square stock's worst single-day session since November 2017. The drop has the shares breaching their 320-day moving average for the first time since early June. Yet despite today's pullback, the equity is still up 21% in 2019. 

The analyst sentiment remains pretty evenly skewed. There are 29 brokerages in coverage on Square, and 15 rate it a tepid "hold," while the other 14 rate it a "buy" or better. Then there's the consensus 12-month price target of $83.97, which was a 3.7% premium to last night's closing perch at $80.98.


a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Market-Moving Event Just 60 Days Away
This analyst predicts a major market moving event happening as soon as August 13.
Chinese Stock Swings Higher on Buyout Bid
Ritter Pharmaceuticals stock is among the worst on the Nasdaq today
Stocks Grab Another Weekly Win as Trade Picture Brightens
Stocks spent most of the week in positive territory
The Market-Moving Event Just 60 Days Away
This analyst predicts a major market moving event happening as soon as August 13.