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Here's How Much Investing $1,000 In The 2015 Square IPO Would Be Worth Today

Here's How Much Investing $1,000 In The 2015 Square IPO Would Be Worth Today

Investors who owned stocks in the past five years generally experienced some big gains. In fact, Since Nov. 19, 2015, the SPDR S&P 500 (NYSE: SPY) total return is 74.7%.

On that day, Square Inc (NYSE: SQ) held its IPO, and IPO investors have significantly outperformed the market in the five years that have followed.

Square’s Big Debut: Digital payment pioneer Square was founded in 2009 and made the move to go public just six years later. It priced its IPO at $9 per share, slightly short of its targeted range of between $11 and $13. Square raised $243 million at a valuation of around $2.9 billion.

At the time of its IPO, Square’s valuation was down more than 50% from the $6 billion valuation indicated in a private fundraising round in 2014.

After selling IPO shares at $9, Square shares hit the ground running, opening at around $11.20 per share and continuing upward to as high as $15.91 in early 2016. At that point, the stock cooled off and dropped back to as low as $8.42 in mid-2016. From mid-2016 to late 2018, Square went on a historic run that carried the stock all the way up to $101.15.

In January 2018, Square announced its Cash App would begin allowing users to buy and sell bitcoin.

From late 2018 to early 2020, Square mostly traded in a wide, sideways trading range of between $50 and $85.

Related Link: Here's How Much Investing $1,000 In PayPal's 2015 Spinoff Would Be Worth Today

Recent News: The COVID-19 sell-off sent the stock as low as $32.33 in March, but investors soon realized the socially-distanced environment would actually provide a massive tailwind for the company’s business.

In the second quarter, Square reported 63% revenue growth and exceeded analyst EPS estimates as well.

The stock hit $100 in June, $150 in August and ultimately peaked at $193.44 in October before pulling back to around $155.

2020 And Beyond: At the stock’s current level, $1,000 worth of Square IPO stock in 2015 would be worth about $17,222 today.

Looking ahead, analysts see even more gains ahead in the next 12 months. The average price target among the 36 analysts covering the stock is $175 suggesting 12.8% upside from current levels.


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