The Square stock price has been in a tight range recently as investors reflect on the company’s $29 billion dollar acquisition of AfterPay. The stock is trading at $270, which is about 7% below the all-time high of $290. This values the company at more than $124 billion, making it one of the biggest fintech firms in the world.
Square has reinvented itself
Square has managed to reinvent itself over the years. The company started as a fintech company that offers payment processing services to online and offline retailers. Since then, the company has entered several other businesses that have now become its pillar.
Cash App, one of the biggest peer-to-peer payment services in the US, is one of the many ways in which the firm has reinvented itself. Today, Cash App has become a super app that allows people to send money to one another. It also allows customers to buy and sell cryptocurrencies.
Meanwhile, Square has also become a leading lender to businesses through its Square Capital business. As a result, the firm’s business has been on a strong growth path. For one, its total revenue has surged from more than $1.7 billion in 2017 to more than $9.7 billion in 2020. It has made more than $15 billion in the past 12 straight months.
Now, the company is gearing to become a leading player in the buy now, pay later (BNPL) business. A few weeks ago, the firm announced that it would acquire Australia’s AfterPay for $29 billion.
This is notable since this is one of the biggest companies in the industry with more than 60 million customers and 100k merchants globally. The firm competes with Zip, Affirm, and Klarna. And soon, companies like PayPal and Apple have expressed interest in the business.
Analysts are optimistic about the Square stock price. Most analysts believe that the shares will likely keep rising in the near term. Those at JP Morgan expect the shares will rise to $320 while those at Barclays, Truist, and Royal Bank of Canada (RBC) expect the shares will rise to more than $320.
Square stock price forecast
The daily chart shows that the SQ stock price jumped to $283 early this year. It then pulled back and declined to $190 in May this year. Now, the stock is approaching its all-time high. It is being supported by key technical indicators like the 25-day and 50-day moving averages.
However, the stock is forming a double-top pattern whose neckline is at $190. This could be a sign that the shares could have a major pullback. These fears will be invalidated if the price manages to move above its all-time high of $285.
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