Square, Inc. shares rose nearly 7% over the past two sessions after third quarter financial results. Revenue rose 44.6% to $257.1 million – beating consensus estimates by $12.15 million – while earnings per share of seven cents beat consensus estimates by two cents per share. Third quarter gross payment volume also increased 31% year over year to $17.4 billion, which reflects increased usage of Square’s platform.
While the stock initially fell 2% in after-hours trading on Wednesday following the third quarter financial results, it quickly rebounded on Thursday and Friday. Analysts have had mixed opinions on the stock, which has risen more than 180% so far this year. Guggenheim analysts upgraded Square stock to Buy from Neutral following the financial results, while Citi Group downgraded the stock to Neutral from Buy, saying that the rally would likely pause. (For more, see: Square Q3 Earnings to Reflect Strong Seller Growth.)
Square shares moved sharply higher after the company posted strong third quarter results, but traders will be watching these levels. …read more
Read more here: Square Stock Jumps to Fresh Highs, Remains Overbought