Payment processing and fintech company Square (NYSE:SQ) is having an absolutely dreadful Monday. As of 1:30 p.m. EST, the stock is down by about 10% and is hovering just above the lows of the day.
While Square has been on a downtrend over the past month or so, previous moves of this magnitude have generally had a clear downward catalyst. Today, however, that doesn't seem to be the case -- there's no major news involving Square.
Square shareholders did get a bit of bad news last week when it was announced that CFO Sarah Friar, who recently decided to leave Square, would be departing earlier than expected in order to spend time with her family. While CEO Jack Dorsey had originally told employees that Friar would remain as CFO "into December to ensure a smooth transition," Friar's last day ended up being last Friday, Nov. 16.
This could certainly be taken as a disappointment but is unlikely to be the cause of today's move -- especially since it was announced last Thursday and has had time to be digested by investors.
Rather, today's move seems to be mainly fueled by the sell-off in technology and tech-related stocks. As of 1:30 p.m. EST, the tech-heavy Nasdaq Composite is down by almost 3% for the day, with many of the more volatile high-growth tech names (like Square) getting hit particularly hard, despite a lack of news.
Moves like this can be especially nerve-wracking for investors, especially when there is no clear reason for the downward momentum. However, long-term investors should simply take a deep breath and realize that moves like this have little to do with the company's long-term investment case. If anything, think of this as Square going on a sudden 10%-off sale.