Financial services and digital payments company Square, Inc. (SQ) recently revealed the launch of the Square Photo Studio app, an app to help businesses in their sales process.
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Following the news, shares of the company declined 2.8% on Wednesday. The stock, however, pared its losses slightly to close at $233.06 in the extended trade.
Implications of the Launch
While making it easy for sellers to take high-quality pictures of their products from a mobile device, the app will also enable the sellers to directly sync them to a Square item catalog or online store to improve the customer experience, saving the seller time and cost of a professional photo studio.
The app interface enables the seller to take the best possible photo by automatically isolating the product from the background. Subsequently, the app then allows users to choose stylized scenes that include new backgrounds, shadows and colors.
Notably, the app is available for use to all sellers and not just ones from the Square platform.
Management Commentary
The Head of eCommerce at Square, David Rusenko, said, “It’s no secret that products with professional-looking photos perform better than those without. Unfortunately, the cost, skill set, and labor involved with taking those photos was often prohibitive. Now, with Square Photo Studio, sellers can give their items the look of a professional photo studio shoot from the comfort of their home, the office, or on the go.”
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Price Target
On November 17, Tigress Financial analyst Ivan Feinseth reiterated a Buy rating on the stock with a price target of $310, which implies upside potential of 33.7% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 17 Buys, 4 Holds and 1 Sell. The average Square price target of $306.48 implies that the stock has upside potential of 32.2% from current levels. Shares have gained about 25% over the past year.
TipRanks Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Square’s performance this quarter.
According to the tool, the website of Square recorded a 17.13% monthly rise in global visits in October. Further, the website traffic has grown 29.58% year-to-date.
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