Square SQ is so high and overvalued, it is ready for a serious short. SQ DCF valuation assuming growth rates of 50% sliding down to 7.5% over 10 year yields a value per share of $45. This assumes SQ will get a large portion of the world's payment system. However, there are many competitors to SQ - VISA, MasterCard and PayPal for example. I don't think SQ will be able to keep up the high growth rates when faced with these competitors. SQ's valuation could be a lot less than $45 per share. Technically, SQ has broken a major up trendline and is in a wedge. The RSI, ROC and MACD are all pointing to a downwards move. I suspect this stock will drop rapidly from here. Note it doesn't have any earnings yet, its P/E ratio can not be calculated because of negative earnings. If SQ can not break even soon and growth tapers, expect a dramatic fall in share price. The drop could start soon when it announces its next quarter earnings. If next quarter earnings are negative again, watch out, it's going to fall.
עסקה פעילה:
Well, who missed the tanking of SQ after their Jun quarter profit announcement? SQs sales are growing but they still have negative earnings. Over the last six months, SQ has a loss widening out to $-0.11 per share. This stock has turned south in a big way and I think it's going down to $45 at least. It may fall further if the overall market tanks hard too. SQ stock may settle for a few days after its recent fall. On any strength, short it and wait for the next drop.