Square Stock Plummets As Analyst Downgrades On Growth, Bank Plans
Summary
Square s ( SQ ) "organic growth" peaked in the September quarter while new catalysts for expansion are lacking, says an analyst who downgraded the digital payment processor on Tuesday. "More importantly, we dont see another Instant Deposit-like (Squares app to instantly deposit sales proceeds) growth driver on the horizon and believe significant top line upside will likely prove more difficult in 2019. "We believe if the company is ultimately successful obtaining an ILC charter, it could prove to be a negative catalyst for the stock as it will likely increase Squares exposure to credit- and bank-related products/revenue," Davis said. Square stock hit an all-time intraday high of 101 on Oct. 1 and then swooned amid the departure of its chief financial officer. The company in early January brought in Amrita Ahuja, an executive at Activision Blizzard ( ATVI ), as its new CFO.