Send me real-time posts from this site at my email

Square Acquires Afterpay in Monster Acquisition. Does This Make It a Must-Buy?

In this video I will cover Square's (NYSE: SQ) Q2 earnings report as well as its acquisition of the Australian buy-now, pay-later company Afterpay (OTC: AFTP.F). You can find the video below.

Earnings highlights

The company reported revenue of $4.68 billion, up 143% year over year, vs. $4.99 billion expected, and earnings per share of $0.39, vs. $0.30 expected. Revenue excluding Bitcoin was $1.96 billion, up 87% YOY. Cash App gross profit was $546 million, up 94% YOY, and seller gross profit was up to $585 million, up 85% YOY. Net income for the second quarter was $204 million. Square processed $42.8 billion in gross payment volume (GPV) in Q2, up 88% YOY. Square Loans facilitated approximately 105,000 loans, totaling $778 million in originations.

Afterpay acquisition

Sunday night Square dropped a bombshell when it announced its plans to acquire Afterpay, which will strengthen integration between the ecosystems of Cash App and Seller. The transaction has an implied value of approximately $29 billion based on the closing price of Square common stock on July 30, 2021, and it is expected to be paid in stock. This means that Square is essentially paying a 39% premium. This is a big move up for Square, as it needs to step up its global presence. Afterpay serves more than 16 million consumers and nearly 100,000 merchants globally, including major retailers across key verticals such as fashion, homewares, beauty, sporting goods, and more.

For the full insights do watch the video below.

*Stock prices used were the closing prices of July 30, 2021. The video was published on August 2, 2021.

10 stocks we like better than Square
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Square wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of June 7, 2021

Neil Rozenbaum owns shares of Bitcoin and Square. The Motley Fool owns shares of and recommends AFTERPAY T FPO, Bitcoin, and Square. The Motley Fool has a disclosure policyNeil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue