On Wednesday, 17 November 2021, Square (NYSE:SQ) announced the launch of its new App, Square Photo Studio, which will assist in the sales process of businesses.
Following the news, shares of the company dipped 2.8%. The stock, however, pared its losses slightly to close at $233.06 in the extended trade.
Product images have become critical to online selling success in recent years. Accordingly, recent Square data found that 94% of retail merchants’ first orders included product images.
The Square Photo Studio app allows sellers to add beautiful, stylized images to their product pages on-the-go and on their phones, without the time and cost of a professional studio. It will also enable the sellers to directly sync them to a Square item catalog or online store to improve the overall customer experience.
Head of eCommerce, David Rusenko at Square:
“It’s no secret that products with professional-looking photos perform better than those without. Unfortunately, the cost, skillset, and labor involved with taking those photos were often prohibitive.”
QUARTERLY RESULTS AND PRICE TARGET
Despite the innovations, it has been a disappointing quarter for Square when compared to its previous quarter. Revenue growth in the last quarter was 143% and in this quarter only 27%, missing their estimates for the quarter.
Net income for the quarter was $233 million and adjusted EBITDA up 29%.
However, the Wall Street community remains cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 17 Buys, 4 Holds, and 1 Sell.
Tigress Financial analyst Ivan Feinseith reiterated a Buy rating on the stock on Wednesday with a price target of $310, which implies an upside potential of 33.7% from current levels.
Ivan believes that Square’s recently announced Square Card is also a “significant game-changer” for the company, and its increasing adoption of Cash App for Bitcoin “will continue to be a growth opportunity.”
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