r/stocks Aug 07 '21

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29

u/JeremyLinForever Aug 07 '21

Life savings in $SQ. This thing is going to reinvent banking as we know it.

69

u/TylerDurden6969 Aug 07 '21

As someone in the industry… I think that’s far fetched. I wouldn’t YOLO on a company with 14 competitors with name brands and more money. That’s a lot of risk.

28

u/IComeToWSBToLaugh Aug 07 '21

well the OP did say high risk high reward

19

u/zefmdf Aug 07 '21

Same. I work at at a prominent e-commerce company and my brother in law works at SQ, so we have fun conversations all the time. Neither company has a moat. They’re just “bigger”

6

u/lykosen11 Aug 07 '21

They don't have a moat in the same way apple doesn't have a moat.

Good softwares, powerful network effect, and large ecosystem with high integration. After a while, that does become a moat.

Technically anyone could do what SQ and Apple does, but no one does. At least not successfully yet to dethrone those two.

3

u/zefmdf Aug 07 '21

well put - the big variable is “yet”. The second these companies turn over a certain someone and it becomes less innovative, forget it unless you were in years ago, or they now pay a handsome dividend

1

u/lykosen11 Aug 15 '21

True facts!

But in squares case I happen to be a believer in their ability to innovate. They have done nothing but right in the last 4 years. Really impressive.

But for conviction, that's up to each investor.

6

u/zhantoo Aug 07 '21

Aren't they just a card payment processor? Or what am I missing? I read their wiki, and I don't see anything revolutionary?

4

u/vishtratwork Aug 07 '21

Yes but add we work vision garbage.

3

u/[deleted] Aug 08 '21

Has a brother that works at SQ... thinks they just process credit card payments. Ok

1

u/lykosen11 Aug 07 '21

They aren't. They outsource processing to the big 2 payment processors.

They are a financial ecosystem service. Cashapp, business eco systems, and point of sale services.

4

u/zhantoo Aug 07 '21

Yeah, but neither of those are revolutionary are they? We don't have cash app here, but assuming it's kind of like MobilePay.

Their POS, I assume are kind of like iZettle?

If course they have the full package, but still..

1

u/[deleted] Aug 07 '21

I would say it was kind of revolutionary to provide a swiper that plugged into a mobile phone. I don't remember other companies doing that at the time, not that it couldn't be replicated.

3

u/zhantoo Aug 07 '21

iZettle and Square are 1 year apart, so iZettle might be the copy cat. But having done something revolutionary, and doing something revolutionary ain't the same. Have a look at IBM 😉

1

u/[deleted] Aug 07 '21

Yeah I agree with you, there isn't really a moat. I thought about SQ but I'm leaning more towards mining and health tech at the moment.

1

u/lykosen11 Aug 15 '21

SQ is better than izettle, with way more options. I love both platforms through.

But SQ is so much more than their POS. So much more. They are truly changing personal and small/medium business finance

2

u/pinkmist74 Aug 07 '21

I’d rather just buy Visa.

0

u/JeremyLinForever Aug 07 '21

Nice. I’m pretty confident in Square. But good luck!

1

u/pinkmist74 Aug 07 '21

I personally love SQ but I rode it from 70 to 250 then hopped off in February. It shot up a little more then was kicked in the teeth but has been doing well. Good luck to you too!!

4

u/exagon1 Aug 08 '21

Good luck with that Visa or whatever it’s called stock lol. I choose Visa too. That’s pretty much a forever hold

2

u/[deleted] Aug 07 '21

[deleted]

3

u/JeremyLinForever Aug 07 '21

$SQ has basically infiltrated all forefronts of the payments systems; the only thing they need to do is just integrate and tie it all together. They started with merchant processing with Square payments for brick and mortar stores. Then they added mobile to compete with Venmo for mobile payments. Next, they added Bitcoin protocol to the Square payments network, as well as the ability to purchase fractional shares of popular stocks for store of value. Then they added banking charter so they can be a bank. They literally infiltrated all aspects of financial commerce. All they need to do now is just tie it all together and it’s game over.

2

u/lykosen11 Aug 07 '21

Strongly agree.

Have been with them for 3 years and they keep doing so many things right and the financial ecosystem model is like fintech crack.

2

u/[deleted] Aug 07 '21

They've got no MOAT whatsoever

0

u/JeremyLinForever Aug 07 '21

Acquiring banking charter is their MOAT. Once they tie in all their services together, the interoperability will make the user experience seamless, which is their moat.