The shares of fintech company hit an all-time high of $167 after reports suggested that Cash App volume grew sharply in August despite easing social distancing policies. YipitData shows that Cash App volumes jumped above 150% in early August compared to the past year period. Its second-quarter revenue came in at $1.92 billion, up sharply from last year’s revenue of $1.17 billion, and exceeding analysts’ estimates for $1.13B. Despite robust financial performance and strong volumes in August, Square stock price has limited upside potential in the days to come. This is because of the lofty stock price valuation. Its shares are currently trading around 250 times to earnings and 37 times to book ratio. Cowen analyst George Mihalos downgraded its stock ratings to Market Perform from Outperform due to the massive share price rally in the past few months. Evercore ISI analyst Rayna Kumar has provided a price target of $131. Square appears in a strong cash position to invest in growth opportunities. It ended the second quarter with $3.7 billion in available liquidity. The company looks optimistic over the future fundamentals and consumers shift towards online payments.
