It's Wednesday, February 24th. Welcome to Marketfoolery. I'm Chris Hill with me today.

Clay Broning. Good to see you. Thanks for being here. Hey Chris, of course. Happy to be here and how you doing?

I'm doing all right. We've got earnings for the great reopening. We've got home improvement.

We're going to start today with the war on cash. Squares, fourth quarter profits and revenue

came in solidly higher than expected. Shares of square, though, are down 7% this morning because growth is slowing.

There's always a lot to get to with squares. So when you look at all the numbers, tell me, what stood out to you?

Yeah, for me, I really focus when I think of square on really their burgeoning business, which is the cash app.

It's funny. You mentioned the war on cash and they have this kind of conveniently named cash app.

It was really some of the numbers that the cash app drew in the quarter and for that amount of the fiscal year.

One of them is 162% increase year-rear and gross profit of the cash app.

A lot of that is being fueled by new users and specifically cryptocurrencies like Bitcoin.

I think one number is that throughout the entire 2020 fiscal year, over 3 million people transacted Bitcoin in some regard,

which was a 200-50% increase in volume compared to fiscal year 19.

And they also even gave some information on January of 2021's figure with over 1 million new buyers of Bitcoin.

So really just interesting figures throughout the entire report, but kind of the Bitcoin being such an important part of that cash app is what really stood out to me.

Yeah, and that was certainly part of the headline around squares, square announcing it had purchased $170 million worth of Bitcoin during the quarter.

So cash app is squares version of Venmo.

It's interesting to see the reaction from the stock because on the one hand, this is a stock, even factoring in the drop today, this stock is up almost 200% in the past year.

So I understand particularly traders on Wall Street with a shorter term mentality saying, all right, it's been a good year.

Let's take a little money off the table. That's the order thing.

But on the other hand, I don't know, the overall market cap of square is just over $100 billion.

It seems like a business with a lot of room to run.

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