Square's Miss May Not Be So Bad as Analysts See an Opening
- Shares fall after first-quarter earnings view trails estimates
- Future growth is ‘underneath the hood,’ Guggenheim says
This article is for subscribers only.
After Square Inc. shares dropped more than 5 percent Thursday on a first-quarter forecast miss, the stock reversed and started rising as analysts maintained their positive outlook on the company’s long-term growth.
Look “underneath the hood” for volume growth in sales of new products such as Square Register and Square Terminal, Guggenheim said. Moffettnathanson echoed the sentiment, saying the Cash App is just a small piece of the company and hardware sales will drive the future.