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SQ Stock Forecast: Afterpay Could Help Sustain Square’s Very High Growth Rate

September 2, 2021

The SQ stock forecast was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Summary

The super-high valuation ratios of Square’s stock are thanks to its recent annual revenue growth rate of 170.72%.
The 3-year revenue CAGR of SQ is 81.04%. Its estimated forward revenue CAGR is 111.31%.
The $29 billion all-stock purchase of Afterpay will further accelerate the already-fast revenue growth rate of Square.
Square’s average projected FY 2021 revenue is $19.05 billion. Afterpay’s FY 2021 revenue is A$925 million. This is substantially higher than Afterpay’s 2018 revenue of A$142.34 million.
Afterpay’s core business is to make loans to people to buy things they could pay later in four installments. After charging fees to partner merchants.