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Square IPO: Cheer up, your morning was better than Jack Dorsey's

By dkpope
Nov 19, 2015
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  1. Earlier today payments company Square went public on the New York Stock Exchange at $11.20 a share, and its CEO Jack Dorsey’s net worth dropped almost $800 million. Forbes reports that even opening higher than expected has still decreased Square's valuation. Square was priced at $9 per share as of Wednesday, but it opened within the higher price range set in early November.

    Dorsey has three-quarters of his wealth connected to Square and the rest of it tied to Twitter, where he is also CEO. Now, if valued on the high end of a $11 to $13 range, Square is worth $4.2 billion, not $6 billion (the number of its last private valuation.)

    Square started in 2009 and offers free software app and a small card reader you can plug into your phone or tablet. Their revenue comes from getting a cut of transaction volumes through people who use the app to sell things. Since 2012, Starbucks has been an important part of Square's business. The two companies made a deal where Square would process credit and debit card payments at all U.S. Starbucks stores. But PCMag says that in August that deal was changed so Starbucks can use other payment options.

    Despite their widespread use (mostly in the U.S., but to a lesser extent in Canada and Japan), Square hasn’t found profitable success. Last year Square’s total revenue was $850 million, but they had a net loss of $154 million. As of the end of this September, Square’s revenue is around $893 million, but they’ve had a net loss of $132 million.

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  2. VitalyT

    VitalyT Russ-Puss Posts: 3,154   +1,429

    We should all be this unfortunate...

    That look, man, I'm 800 mills short, whatta bummer!...
     
    Skidmarksdeluxe and ikesmasher like this.
  3. trparky

    trparky TS Booster Posts: 156   +58

    Here's an idea to all future startups... Don't go public!!!!

    What I don't get is what goes through these CEO's minds that makes them want to be controlled by the most shortsighted group of people to ever exist in the entirety of human existence? Most people on Wall Street couldn't find their @ss with both hands tied behind their back.

    If I ever created a company I sure as hell wouldn't take it public. Taking your company public these days is like agreeing to be someone's slave. You are basically forfeiting the destiny of your company to people who have no clue how your company works.
     
    Last edited: Nov 19, 2015
    mhayen likes this.
  4. davislane1

    davislane1 TS Evangelist Posts: 3,553   +2,358

    Spoken like someone who truly understands nothing about business or Wall Street.
     
  5. umbala

    umbala TS Addict Posts: 169   +145

    ^^this

    +1
     
  6. davislane1

    davislane1 TS Evangelist Posts: 3,553   +2,358

    You give me a +1 and a "this" and not a like? You cheap son of a...
     
  7. trparky

    trparky TS Booster Posts: 156   +58

    Then explain to me why Wall Street seems to be so hell bent on making profit regardless of the fact that it may be detrimental to the overall health of the company in question. Every one seems so focused on what profit they're going to be making in the next quarter. Who cares how much money you're going to be making the next quarter if you end up killing the company in the long run.

    Look at telecom sector which if you ask me is the most horribly run sector of business. All the investors want the likes of AT&T and Verizon to focus on wireless profits because it makes the most profit now. Sure, wireless may be the cash cow now but what about in five years? Several analysts at The Motley Fool predict that in the next four years the wireless cash cow will dry up leaving Verizon that was pressured into focusing on wireless by Wall Street up a creek without a paddle. Oh well, at least we made our profit. Sure, but at what expense? The future of Verizon and everyone that works for the company are all in peril all because Wall Street wants to make more and more profit.

    There's more to business than making profit, there's making sure that you're going to be around in ten years to continue making profit. It used to be said long ago that if you take care of your customers the bottom line will take care of itself. Slow and steady growth is best where investors are in it for the long term making money not on how many stocks they can buy and sell on a daily basis but on the dividends that come from holding onto the stock. Instead we see the kinds of growth that Wall Street wants to see which results in nothing but a dried up husk of a company in the end.
     
    mhayen likes this.
  8. davislane1

    davislane1 TS Evangelist Posts: 3,553   +2,358

  9. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,498   +2,051

    If that happened to me I'd be 900 mills in the hole :D
     
  10. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,498   +2,051

    Only 800 mill poorer? Oh well, I guess you can't always win.
     
  11. mctommy

    mctommy TS Booster Posts: 190   +30

    It's only the first day of trading so who effin cares.
     
  12. mgwerner

    mgwerner TS Booster Posts: 33   +28

    Well then, if you ever start a company, you had better have a personal endless supply of cash.

    The reason companies go public is to raise liquid capital, in order to expand/improve. Perhaps you were skipping Economics 101 that day to protest the lack of diversity at your local Starbucks.

    Go back to your clueless existence, and comment less.
     
    davislane1 likes this.

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