DailyPlay – Square Inc (SQ) – December 8th, 2021

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The bearish DailyPlay for Wednesday, December 8th is Square Inc (SQ). Square has experienced a strong decline as valuations remain high but revenue and EPS growth has decelerated significantly. 

Fundamental View

• While longer term fundamentals look promising, SQ is very highly valued which makes it vulnerable to revenue and EPS deceleration having a larger impact on share price – which has been the case. 
• SQ’s Cash App segment currently has 40 million subscribers, a fraction of its main competitor PayPal
• Earnings Feb 24, 2022 (78 days)

Technical View

• Break below $200 major support level and retracement higher provides a good bearish entry point. 
• Weak technical score (3 out of 10)
• Bearish 1M and 6M trends

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