Square Inc SQ, the payment processing and financial market services company, saw its shares spike higher by 8 percent on Thursday to close the trading session at $11.31 as investors found its second-quarter results to be encouraging.
Square reported a loss of $0.09 per share in its second quarter on revenue of $438.53 million. Wall Street analysts were expecting the company to lose $0.11 per share on revenue of $405.71 million.
Square's top- and bottom-line earnings beat proved to be sufficient to drive Square's stock higher in the near term, but concerns over the longer-term outlook remain. One of the main overhangs on the stock is the fact that the company's CEO Jack Dorsey splits his time between running Square and Twitter Inc TWTR where he also holds the CEO title.
Wall Street analysts collectively reinforced the case against Square's stock, at least for the time being. While a few analysts did raise their rating and outlook on Square, the average price target among analysts is $11.86, which is below Thursday's intra-day high of $12.28 and implies minimal upside from Thursday's closing price.
At time of writing, Square was up 0.71 percent at $11.40 in Friday's pre-market session.
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