As stock market valuations of recently public companies like Square go, so do private market valuations of pre-IPO companies.
In other words, as you read this, unicorn valuations are getting less "unicorny," so to speak.
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
#32All the food trucks, street and market vendors, estate and yard sales, handymen, etc I see accept credit cards using Square. If they figure out how to hang on to this market and grow as these little vendors grow then they're in good shape. Being down 10% when the Dow is down 400+ points for days on is not unusual. The big question is - who is Square competing with.
i live in manhattan and see a lot of vendors (though not usually food) accept payments through hardware that is not square. same technology, just not square
Re: Square stock drops 10%, is now less than IPO price
#33Well, 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…
Your definition of minor is vastly different than mine.
Re: Square stock drops 10%, is now less than IPO price
#34Everything is down. This is almost certainly related to macro signals and not Square itself. Smaller cap stocks tend to have higher volatility and will normally take a heavier beating than larger cap ones.
Re: Square stock drops 10%, is now less than IPO price
#35Earlier quoted context omitted.
The big competitors are Shopkeep and Revel. However, neither of them are public and likely aren't going to soon given the state of the industry.
PayPal is in this market as well: https://www.paypal.com/webapps/mpp/credit-card-reader
I've only ever seen three of those in my entire life, they're all locked in a cabinet behind me gathering dust. On the other hand I paid for something with Square just yesterday and as my card was being swiped the lady said "We're excited because we're suppose to get the new Chip reader from Square next week."
Re: Square stock drops 10%, is now less than IPO price
#36All the food trucks, street and market vendors, estate and yard sales, handymen, etc I see accept credit cards using Square. If they figure out how to hang on to this market and grow as these little vendors grow then they're in good shape. Being down 10% when the Dow is down 400+ points for days on is not unusual. The big question is - who is Square competing with.
If the tech bubble bursts I'm not sure who is going to be buying the $15, undersized lunches that the new wave of food trucks is flooding the market with.
Re: Square stock drops 10%, is now less than IPO price
#37Someone 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%?
Yes, in the short term scheme of things. The bigger news is the long-term trend and the crossing of the psychological IPO threshold.
Re: Square stock drops 10%, is now less than IPO price
#38For comparison, Paypal is down 5%, Capital One is down 5.24%, Intuit down 2.24%, Visa down 3%, Amazon down 4.4%. Not to say that a 10% drop isn't notable, but the whole market is taking a beating today.
It's been taking a beating the last two weeks as well.
Re: Square stock drops 10%, is now less than IPO price
#39Someone 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%?
Not really. Tech stocks are more volatile because more of their value (compared to someone like GE or P&G) is based on hypothetical growth projections- revenue and profit. Any market news can swing these stocks wildly- up or down. Hortonworks HDP dropped 35% y'day just because they decided to raise more money $100M and investors felt that something is wrong.
Re: Square stock drops 10%, is now less than IPO price
#40Someone 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%?
Mostly if we're discussing how equity compensation might not be the best option. Or how preferred investors and founders took what they could from the workers (in response to "refragmentation").
The Square IPO was less than employees who started after their last round and preferences made it even worse, meaning even though there is a liquidity event, employees who took options are out. With this significant drop, other employees who exercised their options (and paid taxes) are also out.