Financial services and digital payments company Block, Inc., formerly known as Square (NYSE: SQ), recently announced that it has entered into a partnership agreement with a Software-as-a-Service (SaaS) platform, Ally, to assist businesses in making their operations more efficient.
Following the news, shares of the company declined 2.5% on Tuesday. The stock pared its losses slightly to close at $130.27 in the extended trading session.
Square is slated to report its upcoming earnings on March 4, 2022.
Strategic Impact
The partnership will bring a fully integrated suite of tools designed to maximize profits, reduce costs, and streamline deliveries for businesses, which, in turn, is expected to increase customer satisfaction.
Further, the combination of Ally’s suite of comprehensive software tools and network of drivers with Square’s expertise in POS systems across locations will allow customers of Ally to use Square’s payment processing tools for a seamless buying experience. The businesses also stand to benefit as they can use their existing equipment to scale operations and meet industry demands.
Stock Rating
Recently, KeyBanc analyst Josh Beck reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $300 to $225, which implies upside potential of 73.1% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 16 Buys and 6 Holds. The average Square price target of $265.43 implies that the stock has upside potential of 104.2% from current levels. Shares have declined about 42.8% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Square’s performance this quarter.
According to the tool, the Square website recorded a 23.46% monthly rise in global visits in December, compared to the same period last year. Moreover, year-to-date, the website traffic has grown 28.36%, compared to the previous year.
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