Square Stock Falls As Revenue, Payment Volume Miss Views Amid New Bitcoin Investment

Square stock fell Tuesday as December-quarter earnings topped estimates while net revenue and gross payment volume came in slightly below expectations, with Bitcoin transactions via the Cash App boosting the top-line. In the Square earnings report, the company also disclosed a new $170 investment in Bitcoin on top of its earlier $50 million purchase.

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San Francisco-based Square (SQ) earnings were 32 cents per adjusted share, up 39% from the year-earlier period. Gross profit increased 52% to $804 million, edging by estimates of $801 million.

Square said revenue jumped 141% to $3.16 as more Cash App users bought and sold digital cryptocurrency Bitcoin.

Analysts polled by Bloomberg had projected a 24-cent profit on net revenue of $3.17 billion. Excluding Bitcoin, Square said fourth-quarter revenue rose 23% to $1.4 billion. Square gets low margins from Bitcoin transactions.

Square stock fell 4.9% to near 244 in extended trading on the stock market today. In Tuesday’s regular session, Square stock fell 4.3%.

Square Stock: Gross Payment Volume Below Expectations

The company said subscription and services-based revenue climbed 60% to $449 million during the quarter.

Square said gross payment volume, or GPV, from merchant customers rose 92% to $32 billion. Analysts projected GPV of $32.1 billion amid Square’s exposure to restaurants and small businesses. GPV from merchants rose 6%.

Adjusted earnings before interest, taxes, depreciation and amortization, known as EBITDA, rose 57% to $185 million. Analysts expected adjusted EBITDA of 137.6 million.

Heading into the Square earnings report, the company had a Relative Strength Rating of 92 out of a possible 99, according to IBD Stock Checkup.

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

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