Square stock drops 10%, is now less than IPO price
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Re: Square stock drops 10%, is now less than IPO price
#2Can someone help explain what this means? Is there something about Square that we can attribute this to? Did they make a mistake? Were they overvalued to begin with?
I've spent the last year trying to understand the whole private-to-public process and I'm curious what this means for Square and other companies like Etsy who are experiencing the same drop in stock price.
Re: Square stock drops 10%, is now less than IPO price
#3Can someone help explain what this means? Is there something about Square that we can attribute this to? Did they make a mistake? Were they overvalued to begin with? I've spent the last year trying to understand the whole private-to-public process and I'm curious what this means for Square and other companies like Etsy who are experiencing the same drop in stock price.
Well without reading up on Square: markets are in a downturn worldwide.
Other remarkable tidbit: Shell now has a smaller marketcap than Unilever.
Re: Square stock drops 10%, is now less than IPO price
#4Someone with a little more knowledge of financial markets, help me out here. Is it really news if a tech company's stock drops 8-10% on a day when NASDAQ is down over 3%?
Re: Square stock drops 10%, is now less than IPO price
#5Can someone help explain what this means? Is there something about Square that we can attribute this to? Did they make a mistake? Were they overvalued to begin with? I've spent the last year trying to understand the whole private-to-public process and I'm curious what this means for Square and other companies like Etsy who are experiencing the same drop in stock price.
They've made some questionable business decisions to spur growth and are being called to task. They haven't seemed to be able to grow effectively without deals like that, and the sector is becoming crowded.
Here's one example: http://money.cnn.com/2015/10/15/technology/square-starbucks/
Re: Square stock drops 10%, is now less than IPO price
#6Can someone help explain what this means? Is there something about Square that we can attribute this to? Did they make a mistake? Were they overvalued to begin with? I've spent the last year trying to understand the whole private-to-public process and I'm curious what this means for Square and other companies like Etsy who are experiencing the same drop in stock price.
For pretty much no reason, a bunch of players in FinTech that are sometimes lumped in with Square (since Square has a financing product) plummeted on the markets starting a week ago. Lending Club, OnDeck, Lending Tree, etc.
Re: Square stock drops 10%, is now less than IPO price
#7Well, the NASDAQ[0] and DJIA[1] are both off 3% for the day right now, along with every other index around the world. Or, to talk about price movements that are probably a bit more noteworthy, crude oil futures on NYMEX[2] are down ~7%.
It's been kind of a (minor) bloodbath so far in the markets today. So, a 10% drop for a young, growth-oriented company is not terribly surprising on a day like today, I'd think.
0: https://www.google.com/finance?cid=13756934
Re: Square stock drops 10%, is now less than IPO price
#8Can someone help explain what this means? Is there something about Square that we can attribute this to? Did they make a mistake? Were they overvalued to begin with? I've spent the last year trying to understand the whole private-to-public process and I'm curious what this means for Square and other companies like Etsy who are experiencing the same drop in stock price.
They've made some questionable business decisions to spur growth and are being called to task. They haven't seemed to be able to grow effectively without deals like that, and the sector is becoming crowded. Here's one example: http://money.cnn.com/2015/10/15/technology/square-starbucks/
That deal has been heavily touted as a terrible deal for square for years. As such was priced into the IPO price as well as the current valuation. That is basically the only bad deal you can point to that they are in.
Re: Square stock drops 10%, is now less than IPO price
#9Can someone help explain what this means? Is there something about Square that we can attribute this to? Did they make a mistake? Were they overvalued to begin with? I've spent the last year trying to understand the whole private-to-public process and I'm curious what this means for Square and other companies like Etsy who are experiencing the same drop in stock price.
I don't think Square was overvalued at IPO. As for today's drop: the fall in oil has hit everyone, unfortunately Square's fall of around 8% is worse than most. For Example today AMZN saw a drop of around 4% and TSLA is down 5.5%.
Don't be wary ;)
Re: Square stock drops 10%, is now less than IPO price
#10Well, the NASDAQ[0] and DJIA[1] are both off 3% for the day right now, along with every other index around the world. Or, to talk about price movements that are probably a bit more noteworthy, crude oil futures on NYMEX[2] are down ~7%. It's been kind of a (minor) bloodbath so far in the markets today. So, a 10% drop for a young, growth-oriented company is not terribly surprising on a day like today, I'd think. 0: ht…
Not only today, almost all of this year. FED + China + Oil.