Jack Dorsey and Facebook (FB) Chief Executive Mark Zuckerberg apparently think alike. Dorsey’s Square stock will change its name to Block, the company said late Wednesday. SQ stock joins Facebook in a corporate rebranding.
Square (SQ) said its name change to Block reflects the company’s commitment to blockchain technology, which underpins cryptocurrency Bitcoin. The name change is effective Dec. 10. Unlike Facebook, the company’s ticker will not change and remain SQ.
SQ stock fell 2.7% to 189.29 in afternoon trading on the stock market today. Shares have retreated 10% in 2021 amid pressure from its Afterpay acquisition.
The digital payment processor until this week shared the same CEO with Twitter (TWTR). Jack Dorsey resigned as Twitter CEO on Nov. 29, ending the sharing arrangement with Square.
SQ Stock: Bitcoin Boosts Cash App
Under Dorsey, Square has embraced Bitcoin. Square Cash App users are able to buy, hold and sell the cryptocurrency. But Square’s Bitcoin business has gross profit margins of only around 2%, SQ stock analysts say.
Still, Square has set up a new business line to help developers build financial services products focused on Bitcoin. Further, Square in November said the Cash App supports “Taproot,” a software upgrade to the Bitcoin blockchain intended to make the network more secure, flexible and scalable.
“Square will be renamed Block reflecting the company’s transformation from its exclusive focus on SMBs (small and medium-sized businesses) to a multi-dimention operation, serving merchants, consumers, the ‘creator’ economy (Tidel) as well as new unit, incorporating cypro initiatives, including DeFi,” said Wedbush analyst Moshe Katri in a report. “The (merchant) Seller segment will retain the Square name.”
Meanwhile, Facebook on Oct. 28 changed its corporate name to Meta Platforms. The social media firm plans to change its ticker from FB to MVRS.
The metaverse, or omniverse, centers on virtual worlds enabled by digital technologies. Analysts expect the next-generation internet to be enabled by augmented and virtual reality as well as livestreaming.
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