Square's Future. A Valuation in Addition.

Dear Reader,

Square Inc, the financial services, merchant payments aggregator and mobile payments company, is currently valued at 93.651 bln. USD.

Actually, based on Square's future development opportunities I would say Square is undervalued. At Price/Earnings ratio of 468 the company is with a lofty valuation metric, though. At least at first glance.

That said, Square could prove the Amazon of payments. For the 2017, 2018 and 2019 calendar years Square grew its revenue by close to 40 % a year and the 2020 calendar year was the company's biggest ever recording 101.50 % revenue growth year on year.

Customers seem to be embracing Square's financial services, point of sales and business loans products. The company facilitates payments by saving people time, effort and money, which are the prerequisites of a great selling product.

Square's products automate payments, facilitate the usage of credit cards and loan businesses much needed turnover money. Artificial intelligence is driving the fourth industrial revolution which is transforming our world at present. Automation algorithms are entering every area of our lives. And few areas are more important than financial services. By providing artificial intelligence algorithms to process payments Square is at the edge of the artificial intelligence revolution in payments.

I forecast Square could end up being for finance close to what Amazon is for internet merchandizing. Square has able management at the helm with Jack Dorsey, a cutting edge product and reasonable pricing for its products. What is more, Square's advanced technology provides it essentially with a first mover advantage which makes the company very difficult to dislodge.

I believe Square could reach a valuation of around 370 billion USD in 5 to 7 years or approximately 4 times its current valuation.

The artificial intelligence revolution coupled with Square's payments infrastructure solutions seem to provide a bright future for the company

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Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

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Respectfully yours,

Petar Posledovich