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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

#51

Post by pound »

boomzilla wrote: post #19
dantillberg wrote: post #7

Well, 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…

Well, for some people, myself included, the not-going-so-well recent IPOs (Square, Box, etc.) would help deflate the pressure on housing prices in SF/BA. I feel for the workers at these company, but it's becoming impossible to raise a family here when the rent/mortgage is creeping up to more than half of most people's salary.

Sorry to tell that but no, it will not really help with raising a family here. Sadly current prices are new normal and deflated pressure will just let them to not grow further up in near future. (5%-10% drop is nothing for affordability). On another hand looking at what it became I don't even feel sorry for it's future. SF is over and to hell with it. Just a whole bunch of douches.

Re: Square stock drops 10%, is now less than IPO price

#52

Post by bunderbunder »

jmagoon wrote: post #41
dantillberg wrote: post #21

Earlier quoted context omitted.

Ha, yes. I don't own a home, but I would like to someday, so I'm always confused how news about falling home prices is treated as "bad" in general in the media. For me, I celebrate the news. I want housing prices to go kaboom so I can afford one.

Yes, but as soon as you buy one you will want housing prices to go up, just like any investment.

Especially so for an investment like housing, where rapid growth due to a shift in the popularity of your neighborhood is about the only reliable way for your "investment" to fare much better than sticking money under the mattress would.

Sorry for the barb, but that meme (your house as an investment) really bothers me, because it has the potential to do a lot of damage. It's like penny stocks. Sure you can make money if you really know what you're doing or get lucky, but by and large the idea that it's a good investment originates with people who've a financial interest in convincing you to buy some.

Re: Square stock drops 10%, is now less than IPO price

#53

Post by supster »

jmagoon wrote: post #41
dantillberg wrote: post #21

Earlier quoted context omitted.

Ha, yes. I don't own a home, but I would like to someday, so I'm always confused how news about falling home prices is treated as "bad" in general in the media. For me, I celebrate the news. I want housing prices to go kaboom so I can afford one.

Yes, but as soon as you buy one you will want housing prices to go up, just like any investment.

Exactly, so many people seem to forget this simple fact

Re: Square stock drops 10%, is now less than IPO price

#54

Post by bunderbunder »

rhino369 wrote: post #45
gtrubetskoy wrote: post #13

All 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.

The other big question is whether that small market for street merchants is really enough to justify the stock price. I'm sure you can build a great business in that market, but is it a 3 billion dollar business?

It's not just street merchants. At least in my area it's also steadily taking over at independent brick-and-mortar businesses too.

Re: Square stock drops 10%, is now less than IPO price

#56

Post by JBReefer »

dasil003 wrote: post #36
gtrubetskoy wrote: post #13

All 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.

Maybe in SF, but not in the rest of the world. Even here in Silicon Alley, we're a small piece of a very large pie.

Re: Square stock drops 10%, is now less than IPO price

#57

Post by potatolicious »

gtrubetskoy wrote: post #13

All 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.

> "The big question is - who is Square competing with."

Anecdotally, tons of other people. Looking at the coffee shops and smaller stores in my area there's a pretty wide array of iPad-POS systems in use that aren't Square. In fact where I am (NYC) I'd wager that Square holds a plurality of that market rather than the majority.

Most of their frontends (in so far as I have to interact with them as a customer) aren't quite as slick as Square's, but they do get the job done, and presumably vendors use them because they're cheaper, which only underscores how fragile Square's business is.

These third party solutions aren't as sexy or slick as Square, but ultimately when it comes to payment processing sexiness is very, very far down the list of priorities.

It's also worth noting that there are big juggernauts moving in on Square's territory of physical transactions - PayPal being one - who already run enormous electronic payment volume. Stripe also has a big piece of the electronic payments pie and can potentially move in on Square's territory, while Square has so far been unable to branch out beyond physical payments.

Re: Square stock drops 10%, is now less than IPO price

#58

Post by brainflake »

elif wrote: post #48
brainflake wrote: post #34

Everything 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.

Coins are up 8.3% on the day, which is strange considering all the bandwagon press universally condemning it. Some of it is correction, but I think generally more people are starting to treat it as a hedge against general global markets--as a haven like gold.

Totally. Investors are probably just moving to gold & treasury bonds as safer assets in anticipation of a global slowdown.

Re: Square stock drops 10%, is now less than IPO price

#59

Post by bdcravens »

elif wrote: post #48
brainflake wrote: post #34

Everything 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.

Coins are up 8.3% on the day, which is strange considering all the bandwagon press universally condemning it. Some of it is correction, but I think generally more people are starting to treat it as a hedge against general global markets--as a haven like gold.

You mean Bitcoin? Probably best to refer to it unambiguously.

Re: Square stock drops 10%, is now less than IPO price

#60

Post by untog »

jmagoon wrote: post #41
dantillberg wrote: post #21

Earlier quoted context omitted.

Ha, yes. I don't own a home, but I would like to someday, so I'm always confused how news about falling home prices is treated as "bad" in general in the media. For me, I celebrate the news. I want housing prices to go kaboom so I can afford one.

Yes, but as soon as you buy one you will want housing prices to go up, just like any investment.

A house is more than just an investment, though. It's, you know, the place you live. The catchment area for the schools your kids go to. The hospitals you have access to. And so on.
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