Square tidal jayz jayz squarerosman12/30/2023 Tidal was founded in late 2014 by rapper and media mogul Jay-Z. The proof? Square’s acquisition of Tidal. And this dip in SQ stock is a buying opportunity. I’d be concerned about this drop if it coincided with a slowdown in the pace of innovation at Square. Square stock has been very weak over the past month. Tidal Acquisition Proves that Innovation Lives On And it’s why SQ has been such an enormous winner on Wall Street for so long. That’s the power of relentless innovation. Get the point? Six years later … on a revenue base about 10X bigger … Square’s revenue growth rate is almost the same. Square’s projected revenue growth rate next year? About 50%. Square’s revenue growth rate back in 2014? About 70%. Square has created an end-to-end cashless ecosystem for both buyers and sellers.īecause the company kept innovating, it never stopped growing. Now, here we are in 2021, and Square is so much more than just a physical payments processor. Fleshed out Square Cash to allow consumers to buy-and-sell stocks and even bitcoin through the app, while also attaching usable, physical debit cards to the account.Created a consumer-facing cashless app, Square Cash, which allowed consumers to digitally deposit, store and transfer money.Developed bank-like services, including Square Capital, which provided loans to customers.Expanded into the e-commerce channel, and developed capabilities so that its customers could use Square to facilitate digital sales.Built out a software services ecosystem that provided payroll assistance and management tools to merchants and retailers.So, throughout the 2010s, Square innovated, and innovated and innovated. They wanted to dominate the cashless megatrend. It was a pure-play on the cashless megatrend.īut Jack Dorsey and company weren’t satisfied by simply being a part of the cashless megatrend. Square started out in 2009 by selling flexible and affordable payment card readers to merchants so that they could accept non-cash payments. I’ve been bullish on Square for a long, long time - and my bullishness hasn’t wavered over that time because Square has continued to impress me with its relentless innovations. Square acquiring Tidal emphasizes that this innovation prowess remains as vigorous as ever - which, of course, sets the stage for Square stock to continue to outperform in the coming years.īig picture: This is still one of the most innovative and exciting companies in the market. The results of this innovation are the fact that SQ is up almost 2,000% over the past decade. The company has, time and time again over the past decade, pioneered breakthrough, innovative technology solutions to materially expand its addressable market and meaningfully extend its growth runway. More noteworthy, the Tidal acquisition underscores the innovation prowess at Square. The Amazon of Houses: This Stock Is Like Buying Amazon in 1997.In other words, Square just expanded its addressable market by another $100 billion. Through its acquisition of Tidal, Square opens up the door to developing ubiquitous fintech tools for the music industry - which is a $100-plus billion industry globally. Yet, over this past weekend, Square just did something that reminded the world why this is still one of the best companies to invest in for the long-term: Square bought streaming music platform Tidal. See Jay-Z and Jack Dorsey's tweets announcing the new Tidal partnership below.Source: Jonathan Weiss / This new deal comes on the heels of Jay selling a 50 percent stake in his Ace of Spades champagne line to Moet Hennessy last month. That is not to say everything has been all good with the streaming service, which has had several CEOs and been hit with multiple lawsuits. In 2017, Sprint purchased a 33 percent stake in the company. In 2016, Apple was in talks about buying the platform. TIDAL launched six years ago and was promoted as the most artist-friendly streaming service. Making the economy work for artists is similar to what Square has done for sellers." New ideas are found at the intersections, and we believe there’s a compelling one between music and the economy. He continued, "Why would a music streaming company and a financial services company join forces?! It comes down to a simple idea: finding new ways for artists to support their work. "Square is acquiring a majority ownership stake in TIDAL through a new joint venture, with the original artists becoming the second largest group of shareholders, and JAY-Z joining the Square board," Dorsey tweeted. Jack Dorsey, who also owns Twitter, commented on the acquisition on Twitter.
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