Shares of payment processing company Square (NYSE:SQ) tumbled 37.1% in March, according to data provided by S&P Global Market Intelligence, as small businesses around the country closed because of the coronavirus crisis.
Square has become a staple of the small business community by creating an easy-to-use payment processing platform, and it's estimated that more than 40% of the company's sales come from restaurants and retailers. With many of those businesses now closed, at least temporarily, Square's revenue will no doubt suffer in the coming months.
The company said in a press release last month that, "Starting in March, the effects of COVID-19 began to impact the company's growth, in particular due to a slowdown in gross processing volume (GPV) for its Seller ecosystem."
Square expects to report a net income loss per share for the first quarter of 2020 and withdrew its full-year guidance "given the uncertainty around COVID-19."
With the continued uncertainty surrounding when small businesses will reopen, investors are worried that Square's sales will continue to fall.
Square's share price slid another 8% since the beginning of April as more investors became concerned about the effects of the coronavirus crisis on restaurants and retailers. It's unclear how much further the company's stock could fall, and investors should expect continued volatility in the company's share price.
If there's one bright spot for Square, it's that the company's underlying business is still intact. Once small businesses begin reopening, the company's payment processing platform should benefit from the spike.