I thought about reducing my stake in SQ, but have decided not too.
Here is why.
Is Square able to move upmarket?
GPV customers >$500K
1Q 2019 24% x 22.6B = 5.43B
1Q 2018 20% x 17.8B = 3.56B
5.43/3.56 = 52% growth
GPV customers < $125K grew 24%
Square is moving up market.
Square is starting to slow on small customers
Square GPV is more than 4x Shopify, and growing about the same
Square GPV of largest customers is bigger than all of Shopify GPV
Shopify has advantage for businesses wanting a large sales presence online
SQ has the advantage for all service businesses, plumbers, electricians, hanyman, cleaners, etc
SQ has the advantage in the food service industry
Room for both SQ and Shopify, huge market, each has their own strengths.
Very impressive SQ can grow the same rate as Shop being 4x bigger.
Cash app did 2.5x transaction this quarter, will be able to monetize more.
Moving into Japan
Launched new square online store
Launched square invoices as a dedicated app, remote payments
1.6B cash
Jim