Are Brighter Days Ahead for Square Stock?
Square's (NYSE: SQ) stock recently rallied after the digital payments company posted its first-quarter earnings. Its revenue rose 44% annually to $1.38 billion, beating estimates by $80 million and exceeding its own guidance for 36%-40% growth.
Square's net loss widened from $38 million to $106 million, partly due to higher reserves for transaction and loan losses, as its adjusted EBITDA declined 85% to $9 million. It posted a non-GAAP net loss of $0.02 per share, which missed expectations by $0.15 and marked a steep drop from its profit of $0.11 per share a year ago.
Those numbers were mixed, but Square's business fared better than expected as the COVID-19 crisis halted payments at many of its small to medium-sized merchants. Square didn't offer any guidance for the second quarter or full year, but could brighter days be ahead as businesses reopen across America?
Source Fool.com
