Should Investors Worry About Square's Declining Payment Volume Growth?
Over the last four quarters, Square (NYSE: SQ) has seen a noticeable decline in the growth rate of its gross payment volume, or GPV. From July 2017 through June 2018, GPV grew between 30% and 31%. Over the most recent four quarters, GPV growth steadily fell from 29% to 25%.
That slowdown has at least one analyst worried. Nomura Instinet's Bill Carcache says the decline in GPV growth is due to greater competition for larger sellers, which make up an increasing percentage of Square's customer base.
It's important, however, to see the forest for the trees. Carcache's predecessor at Nomura, Dan Dolev, pointed out absolute growth in GPV is still climbing. Square added $5.4 billion in the second quarter this year compared to just $5 billion in Q2 2018.
Source Fool.com
