3 Top Stocks to Watch: Square (SQ), 2U (TWOU), Veeva Systems (VEEV) | Summary and Q&A

TL;DR

Square and 2U stocks have taken a hit despite reporting good earnings. Square shows potential for growth with its high gross payments volume, while 2U focuses on partnering with prestigious universities for online graduate programs.

Key Insights

• 😌 Square's potential for growth lies in its strong gross payments volume, which still has room to catch up with industry leader PayPal.
• 🤨 Sarah Friar's departure as Square's CFO raises concerns about the company's leadership and stability.
• 🎓 2U's partnership approach with prestigious universities allows them to establish long-term contracts and generate steady revenue in the online education industry.
• 😶‍🌫️ Veeva Systems provides cloud solutions for the life sciences industry and is expanding into other sectors, showcasing strong potential for growth.
• 🤙 Shareholders can access Veeva Systems' conference calls to stay updated on the company's activities.
• 🥡 Online education disruption is not the approach taken by 2U; instead, they focus on partnering with powerful institutions to extend their reach.
• 💄 Square's software package is crucial to its success, making it a compelling choice for merchants across different industries.

Transcript

Chris Hill: Let's get to the stocks on our radar. Our man behind the glass, Steve Broido, is going to hit you with a question. Jason Moser, you're up first. What are you looking at this week? Jason Moser: We'll talk more about it on Monday's Industry Focus. Sorry for the shameless plug there, but you have to do what you have to do. Square reported ... Read More

Questions & Answers

Q: What contributes to Square's potential growth?

Square's gross payments volume, which was $22.5 billion, increased by 29% from last year, indicating strong performance and potential for growth. Compared to PayPal's volume of $143 billion for the same quarter, Square still has room to expand its market share.

Q: Is Square more than just the hardware device?

Although Square is well-known for its hardware device that plugs into phones, the company's core strength lies in its software. Their software package has become a compelling choice for merchants across various industries, making it the backbone of their business.

Q: How does 2U differentiate itself from other online education platforms?

2U takes a partnership approach with prestigious universities like Harvard and Yale. Instead of disrupting traditional colleges, they collaborate with powerful brands and institutions to bring their master's programs online. This allows them to generate steady revenue with long-term contracts.

Q: How can average shareholders follow Veeva Systems' activities?

Shareholders can access Veeva Systems' conference calls online for free. The company provides clear insights into their software solutions, which help biotech and pharmaceutical companies develop, report, and manage their activities in compliance with regulations.

Summary & Key Takeaways

• Square's stock has sold off despite a strong release, but its gross payments volume is up 29% from last year, showing potential for growth.

• CFO Sarah Friar's departure from Square raises questions about the company's stability.

• 2U's stock also declined after reporting good earnings, but its partnership approach with prestigious universities and long-term contracts signal steady revenue generation.