- The stock price of Square Inc (NYSE: SQ) fell 4.18% as it went from a previous close of $222.34 to $214. This is why it happened.
The stock price of financial tech company Square Inc (NYSE: SQ) fell 4.18% as it went from a previous close of $222.34 to $214. One of the biggest triggers for the stock price decrease has to do with an analyst rating.
Piper Sandler analyst Christopher Donat had reiterated a â€œNeutralâ€� rating on Square following a review of the most recent monthâ€™s top downloads list on the Apple App Store. And he found that the Google Pay App was appearing in the top 10 downloads â€“ which could be a threat to the growth of its rivals including Square.
One of the reasons why the Google Pay App appeared in the top 10 is due to a redesign of the platform. Donat noted that PayPalâ€™s new crypto offerings are likely helping U.S. downloads and the Cash App offered by Square has been decelerating.
â€œOn Nov. 18, Google launched a new version of the Google Pay app in the United States. We view the new app as the driver of download activity and the reason Google Pay is the #5 Finance app in Appleâ€™s App Store (it briefly held the #1 position last week). The redesigned app has new functionality for P2P payments, merchant loyalty programs, and syncing account data. We view the enhanced functionality of Google Pay as a competitive threat to PayPal and Square and will keep an eye on app download activity in coming months,â€� wrote Donat in a research note via StreetInsider.
Disclosure: I have a small SQ position in my stock portfolio.