The Square Stock fell Tuesday as profits beat estimates in the December quarter, while net sales and gross payment volumes were slightly below expectations despite Bitcoin transactions via Cash App, which is boosting sales in the Square- In earnings report, the company announced a new investment of $ 170 million in Bitcoin on top of its previous $ 50 million purchase

Square (SQ) earnings in San Francisco were 32 cents per adjusted share, 39% higher than last year. Gross profit increased 52% to 804 million USD, which is estimated at 801 million USD equals

Square said sales rose 141% to $ 3, 16 billion more cash app users bought and sold bitcoin in digital cryptocurrency

Analysts polled by Bloomberg had forecast a profit of 24 cents on net sales of $ 3.17 billion excluding Bitcoin, sales rose 23% to USD 1.4 billion in the fourth quarter, according to Square, according to Square, with low margins on Bitcoin Cash app transactions

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On the flip side, Square could make a huge profit by buying $ 50 million in Bitcoin in October, the digital currency has soared since October and recently raised Tesla’s (TSLA) $ 1.5 billion investment from regulators could, however, take action against the cryptocurrency

Square stock fell 44% to close to 24520 in expanded trading on the stock exchange today In Tuesday’s regular session, Square stock fell 43%

As expected, Square didn’t provide financial advice for 2021. Square stock rose sharply in 2020 as investors focused on growing their consumer cash app, which shook concerns about Square stock exposure to small ones Companies and restaurants that could close due to the coronavirus pandemic

Square announced that it ended 2020 with 36 million Cash app users, up from 30 million at the end of June

According to Square, gross payment volume (GPV) from retailer customers rose 92% to 32 billion USD Analysts Projected $ 321 Billion GPV Amid Square’s Restaurant And Small Business Engagement, Merchant GPV Up 6%

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 57% to 185 million USD analysts expect an adjusted EBITDA of 1376 million

On the way to the Square earnings report, the company had a Relative Strength Rating of 92 out of 99 possible points according to the IBD Stock Checkup

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing

2:16 PM ET
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Square Stock

World News – CA – Square Stock Falls As Revenue, Payment Volume Miss Views Amid New Bitcoin Investment

Source: https://www.investors.com/news/technology/square-stock-sq-square-earnings-q42020/