Financial services and digital payments company Square, Inc. (SQ) recently announced that it has joined hands with TikTok to launch Square x TikTok, a tool to help businesses expand their online activities. TikTok is a video-sharing focused social networking service.
Following the news, shares of the company dropped 6% on Tuesday. The stock, however, pared its losses slightly and close at $243.10 in extended trade.
The Square x TikTok feature will allow sellers to sync their existing item catalog to TikTok for inclusion in curated shopping tabs on their profiles and include product links in content that will redirect buyers to Square Online to complete a purchase. This will help customers carry out their purchases in an efficient and hassle-free manner.
The feature will be made available to all sellers soon.
The Head of Ecommerce at Square, David Rusenko, said, “Online sales have long been a significant revenue driver for merchants and will only continue to become more vital. We’re looking forward to helping our sellers tap into a valuable, rapidly expanding new customer base on TikTok.” (See Square stock chart on TipRanks)
Recently, Credit Suisse analyst Timothy Chiodo reiterated a Buy rating on the stock with a price target of $300, which implies upside potential of 23.6% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 18 Buys, 4 Holds and 1 Sell. The average Square price target of $313.38 implies that the stock has upside potential of 29.1% from current levels.
Square scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 47.3% over the past year.
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