Jack Dorsey’s Square (SQ) stock prices have increased by almost 100% this year alone and has been trading at 99x it’s forward earnings.
Many say that Square is currently overpriced and has been falling over the last few days. While other point to the fact that in this high tech payment processing space volatility is simply to be expected.
However many long term investors are concerned about losing the gains that Square has made this year and ending on another down note.
With SQ stock prices down by over 10% last Tuesday alone it is little wonder than investors are worried with the dramatic downward motion.
Fundamentally however stock analysts specialized in tech stocks like Square and PayPal continue to be bullish on the long term prospects of the stock.
Many believe that Square stocks will continue to rise and hit the $100 per share within the next 52-weeks.
Many are pointing toward the US trade negotiations in China as the catalyst causing the sudden fall in SQ share prices.
Many doubt the longevity of the current 90 day deal and with tensions rising between US and China, especially with Ms Meng’s arrest, sentiment seems to have shifted toward tough negotiations.
What’s more Stifel an analyst firm has also reduced it’s targeted pricing of SQ stock which could have set off the sell-off.
Scott Devitt from the Stifel firm still continues to rate Square stock as a buy only he has changed the target price of the stock from $100 per share to $95. This shift in target pricing for the stock stems from Stifel detecting new competition arising in the space that could prevent Square from reaching it’s potential.