On Jan. 4, Square (NYSE:SQ) chief executive officer Jack Dorsey converted 100,000 Class B shares into Class A shares and then sold the Square inventory at an average cost of $219.53.

Why #Squarepocalypse Is no Real Concern to Square Stock

The stock sale is actually a component of planned sales by the billionaire co-founder. He began the weekly sales of 100,000 shares on Nov. 16. Since that time, he’s sold 700,000 shares by using his newest divestiture on Jan. 4.

To estimate the whole sales, he probably generated $160 million in pre-tax proceeds. Heck, even billionaires have bills to pay.

When you’re thinking about offering based on these planned sales, don’t. Square’s got plenty of room to run in 2021.

The seven Best Marijuana Stocks on the Markets Right this moment Here’s why.

Square Stock Hits $300 Square stock is today trading at more than $240. Since Jan. one, the stock is up more than ten %.

And that’s in addition to the 245 % gains it realized in 2020, something I’d a suspicion would occur. Here is what I published on Jan. three, 2020:

Since Q3 2017, Square’s GPV [gross payment volume] from sellers with an annual GPV of more than $500,000 grew 700 basis points to twenty seven %. Meanwhile, those sellers with a yearly GPV of less than $125,000 dropped 700 basis points to 45 %. At the same time, sellers with between $125,000 and $500,000 in GPV increased by 100 basis points to twenty eight %. Exactly why is this important? It shows that the company’s revenue has grown to be much more diversified; it today benefits from payment processing across businesses of all sizes.

How’s it doing a year later on this front?

In the third quarter of 2020, sellers with yearly GPV greater than $500,000 accounted for 30.6 % of the $28.8 billion in seller GPV. That’s up 270 basis points from the prior 12 months. Sellers with annual GPV between $125,000 as well as $500,000 were $8.7 billion in Q3 2020, or maybe 10.1 % higher than in the third quarter a year earlier. These two groups accounted for 61 % of seller GPV in Q3 2020, 500 basis points higher than the preceding year.

Of course, sellers with annual GPV below $125,000 still accounted for 39 % of general seller GPV, although it shows bigger companies’ acceptance rate, which is important to its constant growth.

To get to $300 sooner in 2021, two things have to hold growing: Cash App, the finance app of its, and therefore Square Capital, its lending platform.