Join NexChange - the professional
network for the financial services
industry - and receive a free one-
year subscription to Forbes
Blackrock investment signals there is hope for Square yet
Since going public in November, things have been going rough for Square, the payments company started and led by Twitter CEO Jack Dorsey. It listed at a valuation well below its last private round of fundraising and then sunk even further soon after. The most recent round of global stock market turmoil has only made things worse, triggering a 13% drop last week. For asset management giant BlackRock this is a perfect time to invest.
Last Friday it was made public via a filing with the Securities and Exchange Commission that BlackRock has taken at least a 5% stake in Square, with the filing indicating that it holds nearly 2.8 million shares, worth $31.6 million at the time of investment, when Square hit its all-time low of $11.13 a share.
It’s a sign that BlackRock is bullish about the company’s long-term prospects and Square’s share price has since been on the rebound as a result.
It doubtful whether Square will be able to recover all its lost ground in the near-term. But at the very least news is seem to have benefited from news of BlackRock’s investment as the NYSE-listed firm’s share was up 4.69% to $11.84 in a flat market yesterday. Jack’s fortunes may turn around yet.
Photo: JD Lasica