The company released second-quarter earnings on Thursday that beat on earnings and revenue as the cash app made $125 million in revenue from bitcoin in the quarter. That's almost twice what it made the quarter before.
However, the San Francisco-based company issued revenue guidance that fell short of expectations.
Revenue estimates in the range of $2.25 billion and $2.28 billion were lighter than Wall Street's calls for $2.28 billion.
BMO Capital raised Square's price target to $92 from $91 but maintained the stock's market perform rating.
Guggenheim analysts lowered their price target $80 from $94, according to FactSet. The company also removed the stock from its "Best Idea" list.
Lisa Ellis, MoffettNathanson senior analyst, told Bloomberg the selloff in Square was overdone and could be a buying opportunity.
Square reported adjusted second-quarter revenue of $563 million vs. the consensus estimate of $557 million. Adjusted earnings per share were 21 cents vs. consensus estimates of 17 cents.
Third-quarter earnings guidance was between 18 cents and 20 cents a share, below the consensus 22 cents. The company's full-year earnings expectations were in line with Wall Street's 76 cents a share.
Square was trading at $65.11, down 6.43%. The stock has 13 buy ratings, 15 hold ratings, two sells and one underweight rating, according to analysts polled by FactSet.
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