Shares in Square, the finical services company that sells mobile card readers and point of sale systems, as well as recently creating a peer-to-peer cash sharing app similar to competitor Venmo, have soared. The company reported a year-over-year net revenue increase of 64 percent with $1.92 billion in the second quarter. The stock has now jumped more than 11 percent during after-hours trading.
It is largely the cash app portion of Square’s business driving their growing numbers. This year, the stock has more than doubled as consumers turn to digital payment systems during the COVID-19 pandemic. Meanwhile, gross profit has leaped 167 percent year-over-year to $281 million. Stored funds, the amount of money users keep on the app, has also jumped 86 percent from the first quarter of 2020. But it is not all good news for Square. The company relies on small businesses who use their credit card terminals. Many of these businesses have been forced to close temporarily or permanently from the economic fallout of the pandemic.