Square Rises as Nomura Compares Firm to Amazon

The video discusses how to value companies like Square, emphasizing the importance of a long-term view due to exponential growth in services and software. A bottom-up DCF analysis is recommended to evaluate Square's future potential. The video also highlights Square's aggressive expansion in the UK and other regions, which could provide additional growth opportunities.

Why is it important to consider a long-term view when valuing companies like Square?

• Due to the exponential growth in services and software adoption.

• Because they have a stable market position.

• Because their growth is linear and predictable.

• Due to their declining market share.

What is the primary method suggested for evaluating Square's future potential?

• Bottom-up DCF analysis.

• Comparative market analysis.

• Top-down market analysis.

• SWOT analysis.

What should be considered when performing a bottom-up DCF analysis for Square?

• Only the company's current stock price.

• Only the current market trends.

• The contribution of each component and historical trajectory.

• The company's past failures.

Which market is Square aggressively expanding into, according to the discussion?

• United Kingdom

• Africa

• Middle East

• South America

How does Square's international expansion affect their financial projections?

• It decreases their financial stability.

• It provides potential upside to their numbers.

• It complicates their financial reporting.

• It has no effect.