Many investors are big fans of Square (SQ 2.67%), and that includes Motley Fool contributors Matt Frankel, CFP®, Trevor Jennewine, and Toby Bordelon. However, it can help to take a step back and talk about some things you don't like about a particular company. In this Fool Live clip, recorded on Oct. 18, the trio does just that by mentioning two things in particular about Square that are causing them to pay a little more attention.
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Trevor Jennewine: This is one of my larger holdings. It's not in my top three, but I love how they've expanded their business. In one of their recent shareholder letters, they mentioned the acquisition costs for each Cash App user was less than $5. So much I've seen. Banks acquisition cost is about $1,500 per person. Just so much potential and I really like how they've expanded their ecosystem.
Toby Bordelon: Yeah, I think that's right. I own this company. Again, it's one of my larger holdings. They've been impressive. It has been really impressive. It's how they keep doing in different areas and expanding beyond that initial core idea. What's the big acquisition?
Matt Frankel: Afterpay.
Bordelon: Afterpay. Now, I have concerns about that whole industry buy now, pay later. It's interesting to the see them getting into that via acquisition, and with the leader in Australia is how they're doing that.
Frankel: We're a bit concerned they might be overpaying a little bit.
Bordelon: That's certainly a valid concern. I can't remember the premium.
Frankel: $29 billion.
Bordelon: Yeah, very welcome to Afterpay shareholders, I guess you could say that. But I think they've got the money to do it.
Frankel: I'm not without concerns on Square albeit, at this stage, for example, and this is a very unpopular statement to make. I think Jack Dorsey's affinity for Bitcoin (BTC 3.76%) is probably my least favorite part of the company. They just keep doubling down and doubling down on various cryptocurrency related things, which I'm not that much of a fan. I'll let him have his a Bitcoin fun, the rest of the business is doing fantastic.