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 tips to leverage profits in this FREE insider report!



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 IRS Loopholes Retirees Need to Know
Click to continue to advertiser's site.
Call Buyers Stay Behind Huntsman
HUN stock is in focus this morning following bullish brokerage attention
SunPower Stock Dimmed By Stock Offering
SPWR is fresh off its eighth straight weekly loss
The IRS Loopholes Retirees Need to Know
Click to continue to advertiser's site.