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

79 pointsby boomzillaover 9 years ago

13 comments

dantillbergover 9 years ago
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%.<p>It&#x27;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&#x27;d think.<p>0: <a href="https:&#x2F;&#x2F;www.google.com&#x2F;finance?cid=13756934" rel="nofollow">https:&#x2F;&#x2F;www.google.com&#x2F;finance?cid=13756934</a><p>1: <a href="https:&#x2F;&#x2F;www.google.com&#x2F;finance?q=INDEXDJX%3A.DJI" rel="nofollow">https:&#x2F;&#x2F;www.google.com&#x2F;finance?q=INDEXDJX%3A.DJI</a><p>2: <a href="http:&#x2F;&#x2F;www.marketwatch.com&#x2F;investing&#x2F;future&#x2F;clg6" rel="nofollow">http:&#x2F;&#x2F;www.marketwatch.com&#x2F;investing&#x2F;future&#x2F;clg6</a>
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gtrubetskoyover 9 years ago
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&#x27;re in good shape. Being down 10% when the Dow is down 400+ points for days on is not unusual.<p>The big question is - who is Square competing with.
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tyingqover 9 years ago
For comparison, Paypal is down 5%, Capital One is down 5.24%, Intuit down 2.24%, Visa down 3%, Amazon down 4.4%.<p>Not to say that a 10% drop isn&#x27;t notable, but the whole market is taking a beating today.
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brainflakeover 9 years ago
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.
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Silfenover 9 years ago
Someone with a little more knowledge of financial markets, help me out here. Is it really news if a tech company&#x27;s stock drops 8-10% on a day when NASDAQ is down over 3%?
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bhoustonover 9 years ago
Shopify is down more than 50% from its high and below its IPO offering price as well:<p><a href="https:&#x2F;&#x2F;www.google.com&#x2F;finance?q=NYSE%3ASHOP" rel="nofollow">https:&#x2F;&#x2F;www.google.com&#x2F;finance?q=NYSE%3ASHOP</a>
sakopovover 9 years ago
Does this have anything to do with Square? Everything looks bad right now. I&#x27;m surprised MSFT hasn&#x27;t tanked like all other Tech stocks.
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atom_engerover 9 years ago
Can 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?<p>I&#x27;ve spent the last year trying to understand the whole private-to-public process and I&#x27;m curious what this means for Square and other companies like Etsy who are experiencing the same drop in stock price.
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ck2over 9 years ago
To be fair, google is tanking too <a href="http:&#x2F;&#x2F;www.google.com&#x2F;finance?q=goog" rel="nofollow">http:&#x2F;&#x2F;www.google.com&#x2F;finance?q=goog</a><p>Whole market is going nuts over the possibility of $10&#x2F;barrel oil and overly strong US dollar
Animatsover 9 years ago
What&#x27;s Square going to do when Apple gets rid of the headphone connector?
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cs702over 9 years ago
As stock market valuations of recently public companies like Square go, so do private market valuations of pre-IPO companies.<p>In other words, as you read this, unicorn valuations are getting less &quot;unicorny,&quot; so to speak.
Mikeb85over 9 years ago
And now they&#x27;re down 1.3%. Whole market bouncing back.
paulpauperover 9 years ago
more like rectangle - cut in half