Square, the mobile payments company founded by Jack Dorsey, reported its second quarter earnings after the bell on Wednesday. After beating expectations, the stock quickly went up 4% in initial after hours trading.
Square reported revenue of $552 million, when analysts were forecasting $536 million. The company still lost money at 4 cents per share, but less than the 5 cents per share Wall Street was expecting.
At the time of the IPO, Square was widely panned for having a $3 billion market cap that was only half the $6 billion private market valuation. Since then, Square has done a great job convincing investors that it has improving financials and the company is now worth almost $10 billion.
Meanwhile, Dorsey’s other company, Twitter has had a difficult ride on the market. Down from highs of $69 per share, these days Twitter trades around $16.
With a market cap of $11.74 billion compared to Square’s $9.9 billion, it’s not out of the question that Square will surpass Twitter to become the larger company.
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