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The stock market nowadays has shown lots of fluctuation. Several stocks have seen themselves at various points during the pandemic at a record high, while many popular ones have significantly lowered.
While this has come to be expected from the market itself, we investors see ourselves in the ongoing need of looking for the best opportunities to maintain steady and diversified portfolios.
To help you through these uncertain times, here’s one revolutionary business that you might have missed.
Square (NYSE: SQ) is an American financial services company based in California, with ventures primarily focused on digital payments.
As people have been changing the paying habits to match those of a more digitalized world, it stands to reason to say that Square has several prospects for significant growth in the long run.
In return, this would eventually lead them to become an excellent investment.
Square’s business model
As of today, Square’s efforts are separated into two main categories.
On one side, it has its Seller ecosystem. This encompasses a series of products and services meant to fulfill their “payment processing” needs for their customer base. Furthermore, they tend to offer a wide range of solutions based on several types of business.
With the use of their platform, Square allows their customers to carry out any type of payment. Be it remote, manual, in-person or online. Users also have access to financial analytics, inventory-based tracking systems and more.
To improve the platform’s experience, they also offer physical devices to work with it, like a credit card machine, cash drawers and receipt printers.
On the other hand, the Cash App takes the entire payment process to a whole new level. By making full use of modern smartphones’ capabilities, they managed to create an app capable of a wide variety of financial-based functions.
With a quick download and its user-friendly interface, any user can carry out any money sending or receiving deed. It also comes with full access to paycheques as well as the stock market.
Square’s performance in the market
With the help of an ongoing increase in popularity in financial-based technologies, Square was quickly able to capitalize on this and managed to offer several products of quality to this particular market.
As a matter of fact, Square’s efforts were more than enough to bring about a 45% increase in their profits for 2020. For reference, the individual increases in profit within the same year for both Cash App and Seller were 168% and 8% respectively.
Regarding its values on the stock market, the past twelve months showed a remarkable 320% increase.
Additionally, its products and services managed to reach a record of 36 million monthly transactions among customers, representing a 50% increase from the previous year.
For these reasons and more, several analysts agree that Square’s overall performance is set to keep delivering double-digit growth for the following five years at least.
We recommend that anyone looking for a long-term investment should take a look at Square. Its excellent balance sheet and its growth potential are more than enough qualifiers for a worthwhile investment.