Square shares rose due to the growth in its Cash App project

Square’s stock rose 13% on Friday, and the company reported a 140% increase in net revenue to $3.03 billion in the third quarter.

The Cash App for banking and payment services is one of the company’s important projects that achieves amazing results and excites analysts. The total profits of this application have tripled from what they were a year ago and constituted nearly half of the company’s total profits, which is estimated at $794 million.

The app started as a payment method for customers, i.e. as a competitor similar to Paypal’s Venmo app, but Square has launched several app-based projects including the stock market and cryptocurrency, resulting in more profits and economic growth than Venmo.

The results came as a shock to a number of Wall Street analysts who suggested buying the company’s shares to their clients on Friday, and several companies such as Citi, Canaccord Genuity, Needham, Mizuho, Susquehanna raised their sales targets for Square shares after the unexpected quarter results, describing the company’s opportunity for growth. It is a great opportunity that cannot be ignored. Despite the rise in stocks in general this year and the increasing expectations of investors to rise, the company exceeded all those numbers.

The Guggenheim CEO pointed to Square’s ability to emulate the success of Chinese project Alipay and said “it should develop the Cash App into a premium app“. The manager of Mizuho also said that there has been a significant growth in the affiliate feature of the Cash App and that the app is a “Robin Hood” app, referring to the app allowing free trading.

The jump in Cash App’s growth offset the slow growth of Square’s core business, which operates payments in select locations such as coffee shops. For small businesses relying on Square to pay in their usual way, it has been hit especially hard during the pandemic period, but Square has maintained its remarkable prosperity with a total profit of 12% more than the profits of the same quarter last year. It is noteworthy that the company’s shares rose by 217% since the beginning of the year until today, as it rose by 28% in the last week alone.

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