On Jan. 4, Square (NYSE:SQ) chief executive officer Jack Dorsey converted 100,000 Class B shares into Class A shares and then sold the Square inventory at an average price of $219.53.
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The stock sale is actually part of planned sales by the billionaire co-founder. He soon started the weekly sales of 100,000 shares on Nov. sixteen. Since then, he’s sold 700,000 shares through his latest divestiture on Jan. four.
To estimate the whole sales, he probably generated $160 million in pre-tax proceeds. Heck, even billionaires have bills to pay.
When you are thinking about offering based on these planned sales, do not. Square’s got lots of space to work in 2021.
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Square Stock Hits $300 Square stock is right now trading at over $240. Since Jan. 1, the stock is up over ten %.
And that’s along with the 245 % gains it achieved in 2020, something I had a suspicion would occur. Here’s what I published on Jan. 3, 2020:
Since Q3 2017, Square’s GPV [gross payment volume] from sellers with an annual GPV of around $500,000 grew 700 basis points to 27 %. Meanwhile, those sellers with a yearly GPV of under $125,000 fallen 700 basis points to 45 %. At the same time, sellers with between $125,000 as well as $500,000 in GPV increased by hundred basis points to 28 %. Why is this critical? It demonstrates the company’s revenue is now a lot more diversified; it today gains from payment processing across companies of all the sizes.
How’s it doing a year later on this front?
In the third quarter of 2020, sellers with annual GPV greater than $500,000 accounted for 30.6 % of the $28.8 billion in seller GPV. That’s up 270 basis points from the previous 12 months. Sellers with yearly GPV between $125,000 and $500,000 were $8.7 billion in Q3 2020, or 10.1 % higher than in the third quarter a year earlier. These 2 groups accounted for sixty one % of seller GPV within Q3 2020, 500 basis points higher compared to the earlier year.
Sure, sellers with annual GPV under $125,000 still accounted for thirty nine % of overall seller GPV, but it shows larger companies’ acceptance rate, that is crucial to its constant development.
To get to $300 sooner in 2021, two things have to hold growing: Cash App, its finance app, and then Square Capital, its lending platform.