The SQ stock has managed to execute its plans of bolstering its portfolio through a bid on financial services of an online nature in this data-driven world. And this can be portrayed directly through the latest agreement that the company accrued to. The company recently signed up with Credit Karma to acquire the tax business of the latter- something that is called the Credit Karma Tax. Interestingly, this Credit Karma Tax has been known to offer a tax-filing service that is entirely free and is a do-it-yourself one. When the acquisition is complete, this business is going to be added to the portfolio tools of the Cash App of Square. This provides one with solutions that bring into account direct deposits and peer-to-peer payments.
Deal Rationale of the SQ stock
This move is definitely going to show a lot of potential for the SQ stock. The company along with the Credit Karma Tax is definitely going to capitalize on the very increasing demand that is prevalent regarding filing services. Also, this move is going to put the company within the reach of Americans- most of whom are already adopting this service.
With the newest stimulus check, there have been close to 80 million taxpayers who filed their taxes in the tax-filing season. According to data from the IRS, they decided to file their tax returns online. Here, Credit Karma Tax led to the processing of these tax returns of around two million tax-payers. No wonder, the SQ stock is going to be profiting heavily from this service- as it gains strong traction amongst tax-payers.
Early investors will be looking to make a major killing with this, but one has to wait and know when to move in.