Square’s stock was up by as much as 5.9% this morning and had gained 5.5% as of 10:29 a.m. EST.
For the first two days of this week, Square’s stock fell as some investors fled so-called stay-at-home stocks. The company’s digital payment platform has benefited during the pandemic as more businesses have relied on e-commerce, but news earlier this week that Pfizer‘s coronavirus vaccine candidate is more than 90% effective sent many tech stocks tumbling. Some investors believe that life could soon return to normal and that this could end the huge growth that some technology companies have enjoyed this year.
The share price bounce today is likely the result of investors realizing that the company still has great long-term prospects no matter what is happening with the coronavirus vaccine. Square was already experiencing significant growth before the pandemic, and it will continue tapping into the e-commerce trend long after the economic effects of the coronavirus are gone.
Today’s bump adds to the huge gains Square’s stock has already made this year, putting the shares up 188% year to date.
Square’s drop in the first two days of this week and its subsequent pop today show just how volatile many stocks are right now. Some investors are reacting to political, economic, and pandemic news, but their investments would likely be better off by not trading on the daily news cycle.