SQ Earnings Prediction

Just a heads up, in today’s earnings release, Square will likely give Q2 guidance that would yield around 40% YOY growth or less, since 2018 Q2 revenue started to include revenue from Zesty acquisition. Comparison will be tougher in the next 4 quarters due to Zesty and Weebly acquisition.

I reduced my SQ position from 7.2% to around 4.5%. I do feel Square has a long run way, and can grow to 100+ billion in a few years, but likely to face near term pressure.

3 Likes

Just a heads up, in today’s earnings release, Square will likely give Q2 guidance that would yield around 40% YOY growth or less, since 2018 Q2 revenue started to include revenue from Zesty acquisition. Comparison will be tougher in the next 4 quarters due to Zesty and Weebly acquisition.

You nailed it, Macinthebox. Guidance was for 44% revenue growth (at the high end).

This is why I’m out of Square. The growth hasn’t been organic for a while. Plus it’s a very large base now – and it takes a lot more work to move a battleship than a rowboat.

Bear

4 Likes