Square's (SQ) TikTok Deal to Aid Sellers Grow Their Businesses
Square (SQ) introduces Square x TikTok to help its sellers to expand their reach to customers.
Square SQ is leaving no stone unturned to bolster its momentum across sellers on the back of its innovative offerings.
This is evident from its latest partnership with a well-known video creation platform — TikTok.
Notably, the company has come up with an integrated solution namely Square x TikTok, which will allow sellers to leverage TikTok Ads Manager for running ads and link TikTok videos to the items available in their existing Square Online store.
Further, sellers will be able to manage inventory count and sales, and access customer sales history seamlessly with the underlined solution.
We note that the latest move of Square bodes well for its growing efforts toward gaining strong traction across the seller ecosystem.
By featuring products in TikTok content and directing buyers to Square Online store, sellers will be able to expand their reach to the vast active user base of TikTok.
This, in turn, will drive their sales growth.
Hence, we believe that the latest move will help Square to attract sellers to its platform, which, in turn, will bolster its seller base, which remains crucial for the company’s revenue and gross payment volume growth (GPV).
Square defines larger sellers as those who make more than $125,000 of annualized GPV and mid-market sellers as those with annualized revenues of more than $500,000.
The introduction of Square x TikTok is in sync with Square’s growing endeavors to expand its product portfolio.
Its continued focus toward the innovation of its product portfolio has been playing a significant role in shaping its growth trajectory.
Apart from the latest move, the company recently unveiled Automated Clearing House payments on Square Invoices, which is expected to offer efficient payment solutions to both businesses and customers.
Additionally, the company introduced features in inventory management for Square for Retail, including easy item creation, quick inventory counting and smart stock alerts, which are expected to aid retailers in efficient inventory control.
With robust solutions, Square strives to offer a friendly ecosystem to enable sellers to combine software, hardware and payments services in order to help them in running their businesses efficiently and smoothly.
Zacks Rank & Stocks to Consider
Currently, Square carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Semtech Corporation SMTC, NXP Semiconductors N.V. NXPI and Analog Devices, Inc. ADI. While Semtech currently sports a Zacks Rank #1 (Strong Buy), NXP Semiconductors and Analog Devices carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Semtech, NXP Semiconductors and Analog Devices are currently pegged at 12.5%, 10% and 9.67%, respectively.
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