Posted on Nov 20, 2015 in Press
Shares in mobile payment company Square rocketed above its initial public offering price by 45 percent Thursday, capping one of the most closely watched debuts of a tech stock this year.
“What Square pulled off is a very successful reset of its valuations,” said Rett Wallace, chief executive and co-founder of Triton Research, which tracks data about privately held tech firms. “The market rebuffed Square at higher prices for an IPO, then rejected the range of $11 to $13, and finally Square had to price at $9. Square listened to the market.”
Still, Square faces an array of tough questions. Investors want answers about how Square will turn a profit, expand beyond its core payments business, and how Dorsey will juggle his role as Square CEO at the same time he is CEO of struggling social media company Twitter.
Known for its white square credit card readers that businesses can attach to mobile devices, the 6-year-old company has already started venturing into payroll software, business financing and even food delivery with the purchase of Caviar.
“Square has a billion dollars in revenue,” Wallace said. “It’s a real company.”
Read full article at mercurynews.com
