The payments company continued to sink Tuesday morning after the tech sector stumbled on Monday.
Square was down nearly 2% in morning trading as the stock attempted to rebound.
On Monday, William Blair released a note on Square ahead of the company's earnings, which are expected after the bell on Wednesday, Aug. 1.
The company is currently rated as perform by William Blair.
The headline starts the note off strong. It reads, "strong quarter a necessity, given elevated expectations."
The analysts "anticipate 51.5% adjusted revenue growth to $364 million...and adjusted EPS of 12 cents." They also "estimate payment volume growth of 30%, compared to 31% in the first quarter."
However, the analysts don't feel bullish about Square's push into the bitcoin space. "One of management's goals is for Square to provide access to complex financial systems and thus is letting Cash App users buy/sell bitcoin in a 'safe' way." Square raked in $34 million of gross revenue from its push into bitcoin in March.
"We are a bit nervous about the addition of bitcoin trading as we are concerned about regulatory and reputation risk. If Square customers lose material amounts of money from trading bitcoin, it could harm the brands value," wrote William Blair.