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Square Shares Slide After Citron Says ‘Wall St. Drunk on Bitcoin Nonsense’
Square shares slipped slightly after Andrew Left of Citron, a stock commentary source, alleged that the company’s bitcoin trading was insignificant and overhyped.
SQUARE SHARES DECLINE
Square stock dipped briefly on April 30 losing 3.8 percent to land at $45.76 per share. The stock later rebounded but still closed out with a 0.48 percent loss. This decline followed a tweet by Citron on April 30 saying that Wall Street was “drunk on bitcoin.”
This statement appears to a reference to the bitcoin trading on the P2P Square Cash app. Citron also declared that the volume of bitcoin trading on the company’s platform had been insignificant despite the hype.
The stock commentator set a $30 short-term price target for Square stock. This price target is 35 percent below the current price level. Before the price call by Citron, the shares were up by more than 2 percent.
The price of square shares even reached a 2.8 percent peak before Citron made a short call on its stock. According to Citron, the growth in the company’s revenue is lagging behind that of Facebook Inc.
SQUARE INC. AND BITCOIN TRADING
According to Square, bitcoin trading doesn’t have a significant impact on its revenue. The price of the company’s shares hasn’t changed much since the launch of its bitcoin trading platform in January 2018.
However, analysts like Dan Dolev believe bitcoin trading will catapult the company’s shares in the not too distant future. He recently adjusted his Square share price prediction to $65. The company’s shares are up by more than 150 percent in the past one year and 34 percent so far in 2018.
Square is owned by Twitter co-founder, Jack Dorsey, a huge bitcoin proponent. Dorsey believes bitcoin will become the single global currency of the internet in the next decade. By implementing bitcoin payments, the company has been able to overtake its competitors in the digital payment scene.
Bitcoin has certainly become more accessible with the launch of the platform’s Cash app. What’s more, many merchants on the platform favor bitcoin payments over fiat. Users can even buy and sell bitcoin right from the app in a fast and convenient manner.