Square Earnings Market Response

I have not looked deeply at the SQ numbers. But surprised at the market reaction. SQ and SHOP had organic rev growth of 50% and are projecting 40ish% for the remaining 3Qs (which they should beat). Yet, market liked SHOP but not SQ. Further SQ was at a much lower multiple than SHOP to begin with. This SQ/SHOP divergence has been going on for a while. Is the market seeing some weakness in SQ we are not? I am waiting for the SQ transcript.

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I recently exited my position in Square. For almost the last 18 months - it was my largest position, and one I had the most confidence in. I still like the business, but I recently exited due to the stagnant stock price despite Shopify, Paypal, Visa, and Mastercard going up.

My question for others is that although the year-over-year growth is there for Square - I’m concerned by the decrease in sequential revenue, adjusted revenue, GPV, and EBITDA. Even services while still 126%, was down. Still growing overall well for a 30-billion-ish market cap, but not the speed as it once one when looking at sequential quarters. I’m sure there is seasonality with Q4 vs Q1. Just my 2 cents, and curious to what others think

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