No particular person likes dropping cash. It doesn’t truly actually really feel good. It’ll get you out of your investing consolation zone. And in case you’re a novice investor, you run the hazard of overreacting when tried-and-true winners like Sq. (NYSE:SQ) stock flip crimson for a wide range of days.Present: IgorGolovniov / Shutterstock.comIt has been a beautiful 12 months to date for Sq.. The price processor company is up greater than 120% year-to-date. Nonetheless like most completely totally different tech firms, SQ took a tumble in the previous couple of days.Since Sept. 1, Sq. misplaced 15% of its value seeing its market capitalization fall underneath $62 billion. A present run by Barron’s reveals that SQ stock is likely one in all many 20 worst-performing stocks throughout the market over the previous three purchasing for and selling classes.That’s greater than solely a bit uncomfortable. It’s downright painful.Nonetheless pretty than wallowing in our collective distress, downturns similar to these are a chance for retailers to make the most of a important eye to take a current have a look on the names of their portfolios.Does the bull thesis for Sq. nonetheless protect up? Are there long-term headwinds? Will we nonetheless take into consideration in company administration? Is that this downturn a sign to take income, or is it a chance to purchase Sq. stock at a quickly discounted price? These are the sorts of questions I’m used to answering with Progress Investor, solely loads of the names I deal with there are extra obscure and have even greater potential to climb greater contained in the years forward.With all of that in concepts, let’s take a further in-depth look.The Causes for the DownturnThe Nasdaq Composite fell greater than 10% in merely three purchasing for and selling classes to achieve correction territory. And whereas there’s no clear operate why retailers quickly started taking cash out of the large tech stocks, there was some uncommon alternatives purchasing for and selling in a wide range of of the larger tech names which may have been a catalyst for the downturn.Corrections are part of investing, with broader stock market corrections happening on frequent each two years. Nonetheless corrections don’t counsel that the market is sick. If truth be told, they’re inevitable.Wealthy Woodworth, a vp at PGIM Investments in New Jersey, parts out to U.S. Information & World Report that the stock market noticed corrections in 15 of the last word 25 years. Nonetheless even with that monitor doc, the general market averaged a return bigger than 10% yearly in these years.So, whereas SQ stock is likely one in all many names most affected by this month’s correction of tech stocks, it’s not alone, and there’s nothing particular to Sq. that’s inflicting it to tumble.Why Sq. Stock Nonetheless Makes SenseThe novel coronavirus has modified the easiest way by which of us deal with cash and do their banking. Higher than ever, individuals are getting away from cash and ATM transactions and utilizing fintech selections to carry out digital transactions.Sq. is finest acknowledged for its plastic dongles that small- and medium-sized companies can use to insert correct proper right into a smartphone or capsule to course of bank card funds.Nonetheless the largest headwind for the corporate has been its Money App enterprise. The Money App is a peer-to-peer platform that permits Sq. prospects to change cash, use debit card rewards and put cash into every equities or bitcoin. Figuring out firms behind key enhancements like these is a core a part of my approach to investing — it’s how I’ve discovered the “AI Master Key” and fairly a couple of completely totally different progress choices methodology before the market began paying consideration.The Money App actually took off earlier this 12 months when of us realized that they may shortly obtain authorities stimulus checks by way of the CARES Act.MoffettNathanson analyst Lisa Ellis duties the Money App producing $5 billion in annual income and $2 billion in earnings for Sq. in 5 to seven years.Already, the Money App helps Sq. break by way of with some great earnings tales. Contained in the second quarter, the corporate reported earnings per share of 18 cents, which beat analysts’ expectations by 22 cents per share. Earnings elevated by greater than 64% on a year-over-year foundation to $1.92 billion.This May Be the Good Looking for LevelBear in ideas, it wasn’t that methodology once more that SQ stock was at doc highs. You may have caught Nancy Tengler, chief funding officer at Laffer Tengler Investments, on CNBC with an notably bullish kind out Sq..If truth be told, she acknowledged the largest drawback she had with Sq. was discovering an entry diploma as the corporate saved setting doc highs.“If you aren’t in, it’s very difficult to step in here,” she acknowledged on Aug. 28. “We’ll get a pullback at some point and that would be an opportunity.”It didn’t take extended for that likelihood to current itself.The Backside Line on SQ StockIn May, I often known as Sq. “the ideal 21st century fintech stock.” I nonetheless take into consideration that’s true. Sq. is simply tapping into its potential now and the transformation to peer-to-peer digital value is at hand, on account of Covid-19.The one challenge that’s modified is which you’d choose up SQ stock at present at a lowered price. As Tengler says, the pullback in Sq. is a chance that shouldn’t be missed.Sq. stock as an ‘A’ ranking in my Portfolio Grader right now.It’s no secret that tech stocks like Sq. are among the many many many hottest performs on Wall Street now … and it’s constructive to be a powerful winner. Nonetheless there’s one totally different play — one on Synthetic Intelligence — that far too many retailers are overlooking. Their oversight is your path to crucial wealth.The “AI Master Key” is a lesser acknowledged machine discovering out chief that may revolutionize fairly a couple of industries. From healthcare to agriculture, finance to cybersecurity, this company is probably on the highest of all of it. It’s the important issue to unlocking most likely primarily probably the most crucial technological revolution in human historic earlier and all the great income that embody it.Nonetheless that’s merely the tip of the iceberg for Progress Investor subscribers. Backed by the strongest analysis staff throughout the market and my revolutionary approach to investing, Progress Investor has outperformed the S&P by a element of 3-to-1. It’s the place you’d uncover groundbreaking progress performs like my AI Grasp Key extended before they develop to be family names.On the date of publication, neither Louis Navellier nor the InvestorPlace Analysis Staff member primarily accountable for this textual content material held (every immediately or in a roundabout method) any positions contained in the securities talked about on this textual content.Louis Navellier had an unconventional begin, as a grad scholar who by likelihood constructed a market-beating stock system — with returns rivaling even Warren Buffett. In his newest feat, Louis found the “Master Key” to benefiting from the largest tech revolution of this (or any) experience. Louis Navellier may protect among the many many aforementioned securities in a wide range of of his newsletters.