On Jan. four, Square (NYSE:SQ) chief executive officer Jack Dorsey converted 100,000 Class B shares into Class A shares and then sold the Square stock at an average price of $219.53.
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The stock sale is part of planned sales by the billionaire co-founder. He soon began the weekly sales of 100,000 shares on Nov. sixteen. Since then, he’s sold 700,000 shares through his newest divestiture on Jan. four.
To estimate the whole sales, he likely generated $160 million in pre tax proceeds. Heck, even billionaires have bills to pay.
If you are thinking about offering based on these planned sales, don’t. Square’s got ample space to work in 2021.
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Square Stock Hits $300 Square stock is today trading at more than $240. Since Jan. 1, the stock is up over ten %.
And that’s on top of the 245 % gains it attained in 2020, something I had a suspicion would occur. Here is what I published on Jan. 3, 2020:
Since Q3 2017, Square’s GPV [gross transaction volume] from sellers with an annual GPV of around $500,000 grew 700 basis points to 27 %. Meanwhile, those sellers with a yearly GPV of less than $125,000 dropped 700 basis points to forty five %. At the same time, sellers with between $125,000 and $500,000 in GPV increased by 100 basis points to 28 %. Exactly why is it important? It demonstrates the company’s revenue is now a lot more diversified; it now benefits from fee processing across businesses of all sizes.
How’s it doing a year later on this front?
In the third quarter of 2020, sellers with yearly GPV greater than $500,000 accounted for 30.6 % of the $28.8 billion in seller GPV. That’s up 270 basis points from the preceding year. Sellers with annual GPV between $125,000 as well as $500,000 were $8.7 billion in Q3 2020, or perhaps 10.1 % higher than in the third quarter a year earlier. These 2 groups accounted for 61 % of seller GPV in Q3 2020, 500 basis points higher than the previous 12 months.
Of course, sellers with annual GPV less than $125,000 still accounted for 39 % of general seller GPV, but it shows bigger companies’ acceptance rate, which is critical to its constant growth.
To get to $300 sooner in 2021, 2 things have to keep growing: Cash App, the finance app of its, and Square Capital, its lending platform.