The Best “Tech Disruptor” Stock to Buy (No. 4 of 4)

finviz dynamic chart for  SQ

Since its inception in 2009, CEO Jack Dorsey and his team at Square (SQ) have been on a mission to help all 7.8 billion people on Earth participate and thrive in the economy.

The company makes commerce easy with their in-store credit card readers. And it makes the economy more inclusive for everyone with its in-house payments and investing platform, the Cash App – introduced in 2015.

Cash App is one of the fastest growing digital wallets in the U.S. In just two years, from 2018 to 2020, monthly active users more than doubled from 15 million to 36 million.

Not only does the Cash App conveniently allow people to virtually send money to each other through their connected bank accounts for free, it also acts a commission free brokerage platform for trading full or fractional shares of stocks and Bitcoin.

If you can’t afford to buy one share of Amazon.com Inc. (NASDAQ: AMZN) for approximately $3,160 or one Bitcoin for $55,000, then you can use the Cash App to buy as little as $1 worth at a time – completely for free.

Cash App makes money by charging businesses to use their application and individual users transaction fees to access additional services. And in fiscal 2020, Cash App revenues jumped 354% year-over-year from $1.3 billion to $5.9 billion.

After falling 55% with the market during the recent coronavirus correction, SQ stock has significantly outperformed.

Its run from $38 in mid-March to $210 today represents a gain of 452%, bringing it considerably higher than its pre-COVID-19 levels of $83.50 per share.

The fundamentals with Square are strong as analysts are expecting Cash App users to reach 40-45 million by the end of the 2021.

When you combine that with the stock's recent technical momentum, it's fair to expect a substantial increase in 2021.