Square shares down 15% in heavy volume at midday

Shares of Square Inc. plunged 15% on heavy volume, after the company reported mixed second-quarter results but provided , but some analysts were upbeat about the deal to sell Caviar for $410 million in cash to DoorDash. Trading volume of 21 million shares was already nearly triple the full-day average, and enough to make the stock the most actively traded on major U.S. exchanges. The company reported late Thursday earnings and revenue expectations but missed on gross payment volume, but provided a third-quarter adjusted profit guidance range that was below analyst expectations. Meanwhile, analyst Andrew Jeffrey at SunTrust Robinson Humphrey said the Caviar sale allows Square to focus on its core Seller and emerging Cash App businesses, as the company plans to reinvest the proceeds from the sale. He raised his stock price target to $75 from $65, but kept his hold rating. J.P. Morgan‘s Tien-Tsin Huang said the Caviar sale "makes sense," as it should not only add to margin but also free up time and capital to focus on its core ecosystems. The stock has rallied 22% year to date, while the S&P 500 has gained 16%.

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