Why Square Stock Just Jumped 5%

Rich Smith, The Motley Fool
·2-min read
Why Square Stock Just Jumped 5%

Shares of Square (NYSE: SQ) stock surged 4.9% in Wednesday afternoon trading, as of 1:40 p.m. EST, after the company announced it has reached a "definitive agreement" to acquire the Credit Karma Tax unit of consumer credit report provider Credit Karma. Square will acquire the free tax-filing service and add it to its own Cash App subsidiary in a deal valued at $50 million, cash. In a statement, Square explained that its new acquisition "will expand Cash App's diverse ecosystem of financial tools -- which currently includes peer-to-peer payments, Cash Card, direct deposit, as well as fractional investing ... giving customers another way to manage their finances from their pocket."