Last quarter, PayPal added 16 million new active accounts an 72% increase from a year earlier and as a result, revenue was up 23% and earnings were up 29%. Square and their Cash App competes directly with Paypal and their Venmo, so I thought Square was going to blowout the numbers
Shares of Square (NYSE:SQ) fell 7.5% on Wednesday, following the release of the digital payments and financial services company's fourth-quarter results.
Square's revenue soared 141% year over year to $3.2 billion, fueled by a surge in demand for its Bitcoin (CRYPTO:BTC) trading services. Excluding its Bitcoin business, the fintech leader's revenue rose 23% to $1.4 billion.
Notably, Square is growing more profitable as it scales its operations. Its gross profit jumped 52% to $804 million, driven by a 162% surge in Cash App's profits. Square's massively popular peer-to-peer payment platform saw its monthly transacting active customers rise by more than 50% from the prior-year period.
The did blowout the numbers, but the expectations were too high and the stock sold off. But what really made the headline was Square bought more Bitcoin. Back in Fall Square purchased $50 million in bitcoin. At the time Square’s CFO Amrita Ahuja said that the company believes that bitcoin has the potential to be a more ubiquitous currency in the future.
Well, Square did it again, this time the company bought $170 million in Bitcoin. This time, Square CFO Amrita Ahuja told CNBC that Square’s purchase of additional in Bitcoin was in alignment with economic empowerment.
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