NEW YORK, N.Y. – Square, the 6-year-old startup known for its white, cube-shaped credit and debit card readers that plug into smartphones, surged in its first day as a publicly traded company.
A 45 per cent spike caught almost everyone off guard after the company priced its stock at $9, well below what had been expected late Wednesday. The jump in value put the stock above the original $11 to $13 range set last week.
That markdown this week was seen as a concession by the company, headed by Twitter co-founder Jack Dorsey, that investors are becoming wary of once-hot startups that haven’t proven they can make money.
Another startup, The Match Group, also jumped in its first day of trading, rising almost 13 per cent.
Square gained $4 to reach $13 in midday trading.