SQ – Market expectations are for Uniform ROA to reach new peaks, but management may have concerns about their TIDAL acquisition, Seller ecosystem, and Boost rewards

• Square, Inc. (SQ:USA) is currently trading at a historical high relative to UAFRS-based (Uniform) earnings, with a 225.9x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about their TIDAL acquisition, the Seller ecosystem, and the potential of their new Boost rewards.
  
• Specifically, management may be exaggerating their ability to build a payment system that scales with the business and attracts larger retailers, and they may lack confidence in their ability to drive customer engagement for Cash App through their TIDAL acquisition. Furthermore, they may have concerns about the potential of their new Boost rewards, especially related to Bitcoin, and the launch of their beta-stage lending product. Finally, management may lack confidence in their ability to sustain their competitive advantage, meet emergent artist needs, and maintain Seller gross profit performance.