The stock market doesn’t exactly have a great day on Friday, but square (NYSE: SQ) is another story. The fintech giant was up more than 11% by 10:30 a.m. EST to an all-time high.
To say Square’s third quarter results are impressive would be an understatement. Total net sales increased a staggering 140% year over year to over $ 3 billion. The company’s Cash app continues to mine across all poles, generating a total profit of $ 385 million for the company – more triple what it created Square a year ago. Customers are using more and more of the app’s products, and the number of daily active Cash app users has doubled from a year ago.
The company has also updated on how some of their newest and most exciting products are performing. For example, although it hasn’t even been in operation for a year, more than 2.5 million people bought the stock through the Cash App. And the Square Card corporate debit card hit more than $ 250 million in spending this quarter after starting from almost nothing less than two years ago. The list goes on – there’s little if anything in Square’s earnings report could be considered a disappointment.
So what now
Overall, Square’s gross profit was up 63% year-on-year, a huge boost from the 30% to 42% growth the company has generated over the past four quarters. And not only that, Square is growing in ways that can generate long-term revenue streams and grow for years to come. In short, Square delivered higher results and exceeded investors’ expectations and today’s move is much more plausible.