Apr 30, 2021
[1 min Read]
One of the many companies anticipated to report earnings is Square inc. (NYSE:SQ), which has upcoming earnings on May 6th. Recent increase in BTC has impacted SQ in a positive way, increasing Cash App's customer base. Currently Cash App has around 36 Million monthly transacting customers (up 50% YoY). In Q4 2020, Cashapp accounted for 46% of gross profits, and now looking at current economic situation in the US alongside BTC's price appreciation since Q4 2020, Cash App is poised to increase its gross profits and start to impact SQ much more.
Cash App is a force to be reckoned with, and was unexpected by many in the industry. With BTC purchases on the Cash App platform increasing 2.5x, SQ is bringing BTC to the masses, especially since SQ's Customer acquisition cost is less than $5, yielding 6x in three years.
Square's mission to to bring financial services to all. Through Cash App, a customer can hold, transfer and receive funds, purchase stocks and fractional stocks, and HODL BTC. With the current Earnings coming up, Investors should pay attention to Cash App and its impact on the business. SQ has a prominent Point of Sale ecosystem, leading the industry with new technology and innovation. Looking solely at Cash App I am bullish longterm, and I would say SQ is a buy. SQ can also be a safe bet for investors looking for BTC exposure, as BTC represents 5% of SQ's Balance sheet.