Square, Inc. (SQ) - Investment Thesis
Company overview For those not familiar with Square’s business, I highly recommend reading their most recent Investor Presentation before diving into this investment thesis as this will build upon having an understanding of the current business. As a quick primer, Square currently has two ecosystems: 1) their Seller ecosystem that enables small business owners to manage almost their entire business from end-to-end payment acceptance, payroll software and business loans via Square Capital, and 2) Cash App that is similar to a modern consumer bank with P2P transactions, debit card, and a simple platform for investing in Bitcoin and shares of US-listed companies. 2020 Investment Catalysts 1. COVID-19 has accelerated transition of offline commerce to modern Point of Sale (POS) systems such as Square It’s estimated that over 7.5 million small businesses are at risk of closure due to COVID-19. Undoubtedly many of them are Square merchants that also have Square loan