The stock market is having a fairly strong day Thursday after a multi-day slump due to renewed COVID-19 concerns. At 10:20 AM ET, the S&P 500 was about 0.6% higher. However, not all stocks were having a good day. financial technology giant Field ( mint -1.93% ) It was a massive underperformer, with its shares dropping about 3.5%.
There are two possible explanations for Square’s poor performance. First, it is worth noting that the technology sector is one of the worst performing sectors today. The tech-heavy Nasdaq is hovering around the flat line. And therefore some The poor performance can be attributed to the weak sector.
Second, and most importantly, Square announced Wednesday afternoon that it will be changing the company’s name to Block, effective December 10. Once the change occurs, the ticker (SQ) symbol will not change, and the seller’s business will retain the Square branding. Noun.
Why did Square change its name? The short answer is that Square’s offerings today are very different from the small business financial solutions the company was founded on. Cash app and TIDAL music platform are two examples. Block aims to represent Square’s vision for the future – the company represents its various businesses as “building blocks” and also refers to blockchain, which is a major focus of co-founder and CEO Jack Dorsey.
It’s also worth noting that Square Crypto is changing its name to Spiral at the same time, a move designed to give the company its unique identity within the company’s ecosystem.
The name change comes just days after Dorsey decided to step down Twitter ( TWTR -0.28% ) Focusing exclusively on Square. And based on today’s move, investors don’t seem to know exactly what to do with it. It remains to be seen how many square a job The focus will shift toward blockchain and other new efforts, but for now this appears to be just a name change, like the one Google made when it became the alphabet ( The Google 1.61% )( The Google 1.41% ).
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