Worried about Square

I am pretty heavily invested in Square. I like the company, and they’ve been growing very rapidly. The stock took a breather, but I think (hope) it’s on the mend.

The one thing that concerns me is CEO, Jack Dorsey. As I’m sure most of you know, he’s also CEO of Twitter. IMO, Twitter is a mess. I’m a little concerned that Dorsey will end up devoting virtually all his time to the “squeaky wheel”, Twitter and ignore Square.

Anyone care to allay my concerns? I’ve not sold my Square stock, but I’m considering it.



This was one of my concerns going into last year: https://www.fool.com/investing/2017/01/24/3-concerns-for-squ…

As it turns out, both companies outperformed the market. Dorsey has truly done a remarkable job at both companies this year, I think:

What a difference a year makes…

Last year was one Twitter (NYSE:TWTR) CEO Jack Dorsey would doubtless rather forget. The unpleasantness came to a head in October at the Money 20/20 conference, where Dorsey defended his decision to remain CEO of Square (NYSE:SQ) while taking on the same role at Twitter. Twitter had reportedly unsuccessfully shopped itself to Alphabet and Disney earlier that month, and its shares fell approximately 20% on news of the attempt’s failure. Twitter followed that by announcing plans to cut its workforce by 8%. Overall in 2016, shares of the microblogging site fell 30% while the broader U.S. market rose 12%.

Meanwhile, Square in October 2016 was trading at roughly $11 per share, more than its $9 IPO price but lower than its price during the last private funding round. Square shares fared moderately better than Twitter’s in the full 2016, rising 4%, but still nowhere close to the market average. Analysts blamed Dorsey for both companies’ underperformance, alleging the unusual dual-CEO arrangement spread the young executive too thin to be effective. (Dorsey’s turning 41 in the next week.)

You’re hearing that less often now.

From https://www.fool.com/investing/2017/11/15/is-jack-dorsey-ceo…

This article on Business Insider explains how Dorsey splits his work day which begins at 5am and ends at 11pm (mornings at Twitter, afternoons at Square): http://www.businessinsider.com/how-jack-dorsey-manages-his-t…

In that article, he talks about how he knows every single detail of Square because he’s been there since the beginning and built it from the ground up:

“Square is something I built from day one and I know every single detail of that system,” he explained at The New York Times DealBook conference last month. “[With] Twitter, I had to learn a few things in my absence. I had to learn why we made decisions and what the principles were and how we might change those or how we might evolve those. Both required very different answers.”

Besides, Square CFO Sarah Friar is sensational. She might be better than Jack.

And more of Dorsey’s personal wealth is tied up in Square then in Twitter, if that makes you feel better.

Anyway, this is something I was very concerned about going into 2017, but not so much any more. YMMV.

Long SQ
MasterCard (MA), PayPal (PYPL), Skechers (SKX) and Square (SQ) Ticker Guide
See all my holdings at http://my.fool.com/profile/TMFCochrane/info.aspx


Yeh I actually think Jack is very cool and highly competent. I thought about buying into Twitter last year. I hate the product but it appears to have value to a loyal crowd, seems to get a lot of free coverage courtesy of POTUS and Dorsey is kinda brilliant.

Square I like a lot - fast growing and profitable although was disappointed by the sell off as well as the potential competition from Shopify. I hope it will merge with Paypal at some point.

Then you get short positions like this…


Thanks Matt, that actually helps.

I wonder how long Dorsey can keep to that schedule, 18 hour days have got to take a toll.

I too have been very impressed with Sarah Friar.



hey brittlerock if your worrying has more magical effects like it seems to have had on SQ today, please worry some more . Just joking…

https://seekingalpha.com/article/4135432-square-still-startu… this dated 1/4

https://money.usnews.com/investing/stock-market-news/article… this dated 1/5
opinions, everybody has them Most of the media is best ignored

from the last link

Shares of Square jumped 8%, extending its momentum from what was an amazing performance from the payment processing company in 2017. offering no reason for the pop today
but saying Square is also a serious buyout candidate given its huge growth numbers and relatively modest $16 billion market cap. Brendler says Paypal Holdings (PYPL) is the most likely buyer, but any company looking to establish a major presence in the payments business could be interested.

buyout is seemingly unaffordable on a conventional valuation basis but not so much on a market cap basis. All good tech stocks are expensive…To me the idea of lending using other people’s money by Invitation Rather Than Application is revolutionary when combined with sQ knowledge of borrower’s sales.