Replies to post #14566 on Keeping It Simple

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Block Stock: The Comeback is Underway, Says Deutsche Bank
TipRanks
Tue, October 24, 2023 at 3:34 PM MDT
https://finance.yahoo.com/news/block-stock-comeback-underway-says-213450247.html

Block (NYSE:SQ) investors have had little to shout about this year. While other tech stocks have charged ahead, SQ shares have trended in the opposite direction; to wit, the stock has shed 28% of its value on a year-to-date basis.

Sentiment has been low to such an extent that even after delivering a strong Q2 report boasting beats on both the top and bottom lines in addition to raising its operating income outlook, the less appealing aspects of the report took hold of the narrative.

Assessing the digital payments giant’s current situation, Deutsche Bank analyst Bryan Keane thinks the blame for the poor share price performance lies with “self-inflicted wounds,” and that these are actually masking “solid fundamentals.”

“Despite continuing to show strong fundamentals across its business segments, passing through recent EBITDA beats, and making baby steps forward with regard to its guidance philosophy, SQ shares have been plagued by short-term volume worries and poor communication on the direction of the business,” Keane said.

One of the issues that rankled with investors following the Q2 print centered around the disappointing gross profit growth seen so far in the quarter, and Keane believes that one of the ways to help boost investor confidence would be by providing mid-term gross profit expectations for Square and Cash App alongside a “more specific timeline” around the company’s ‘Rule of 40’ target (the rule used by software companies that states a total of 40% or more should be reached when adding up its revenue growth rate and profit margin).

Additionally, recent worries about a decline in the Square segment, which were amplified by the unexpected departure of former CEO Alyssa Henry, as well as challenging comps for the Cash App, worsened by a recent outage affecting both platforms, resulted in a sell-off in the shares.

“However,” says Keane, “comps in the Square seller business get much easier in October (renewed energy from Dorsey could help ignite sales), and Cash App gross profit growth should remain above 20%, in our view.”

As far as the Q3 print is concerned (slated for November 2), although Keane sees “limited gross profit upside” compared to current expectations, he forecasts another “bottom-line beat and raise” from the readout.

“We remain bullish on the company’s long-term outlook with what we see as sustainably high growth rates and continued progress towards GAAP profitability,” the analyst summed up.

All told, Keane reiterated a Buy rating on SQ shares along with a $75 price target. If correct, investors could be lining their pockets with a 65% gain. (To watch Keane’s track record, click here)

Elsewhere on the Street, based on an additional 25 Buys and 7 Holds, the analyst consensus rates the stock a Strong Buy. The average target remains higher than Keane will permit, and at $78.48, suggests shares will climb 73% higher over the one-year timeframe.

(NTS: SQ to gap down 10/25 after Frances Worldline issues sales and margin warnings.)

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Block Investors Remain Concerned Over Slowing Square Seller, Cash App Profit Growth, Morgan Stanley Says
12:36 PM ET, 11/01/2023 - MT Newswires
12:36 PM EDT, 11/01/2023 (MT Newswires) -- Block (SQ) investors remain concerned over decelerating Square Seller and Cash App gross profit growth in Q3, relating to third-party data that pointed to slowing trends in October, Morgan Stanley said in a Wednesday note.

"For now, we think ongoing health of overall employment and ADP commentary around strength in its down-market businesses read favorably for Square," said the investment firm. Morgan Stanley also said results and management commentaries from Block's peers demonstrate "fairly resilient" consumer spending trends through October.

Most investors, however, are still anticipating a "meaningful beat and raise" for Block's Q3 earnings before interest, taxes, depreciation, and amortization, according to Morgan Stanley. The firm also noted that Block's investment case requires accelerating growth of both its Square business and Cash App as any weakness in Square's profitability could compromise funding for the Cash App.

Block is set to release its Q3 results on Nov. 2.

Morgan Stanley maintained an equal-weight rating on Block, with a price target of $69.

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Block (SQ) investors remain concerned over decelerating Square Seller and Cash App gross profit growth in Q3, relating to third-party data that pointed to slowing trends in October, Morgan Stanley said in a Wednesday note.

"For now, we think ongoing health of overall employment and ADP commentary around strength in its down-market businesses read favorably for Square," said the investment firm. Morgan Stanley also said results and management commentaries from Block's peers demonstrate "fairly resilient" consumer spending trends through October.

Most investors, however, are still anticipating a "meaningful beat and raise" for Block's Q3 earnings before interest, taxes, depreciation, and amortization, according to Morgan Stanley. The firm also noted that Block's investment case requires accelerating growth of both its Square business and Cash App as any weakness in Square's profitability could compromise funding for the Cash App.

Block is set to release its Q3 results on Nov. 2.

Morgan Stanley maintained an equal-weight rating on Block, with a price target of $69.

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Block could be on 'path of potential catalysts': Analyst

Julie Hyman and Luke Carberry Mogan
Thu, November 2, 2023 at 4:00 AM MDT
In this article:

https://finance.yahoo.com/video/block-could-path-potential-catalysts-100000201.html

Payment platform Block (SQ) will report its third-quarter earnings after Thursday's closing bell. The stock has fallen off by more than 36% year-to-date in 2023. Bank of America Securities Senior Payments Analyst Jason Kupferberg sits down with Yahoo Finance Live to share insights into the company and his "Buy" rating on the stock.

"The company has recently pivoted their go-to-market strategy to be more vertically oriented, and that's a new change that started this past summer," Kupferberg says. "We could see some results from that in a positive fashion into 2024."


Video Transcript
- Do you think that people should be buying Block going into this print, Jason?

Big ideas, bold decisions.
JASON KUPFERBERG: We do have a buy rating on Block. We are positive on the company. We think the stock is oversold. We think that fundamentals over a multi-year period will be better than what the stock is currently reflecting. We think that there's an incredible amount of concern reflected at this multiple both on the consumer facing cash app side of the business, as well as the merchant facing seller side of the business.

And we see investor sentiment, probably being about as low as it's ever been in this stock. So we do see positive risk reward.

- And Jason, beyond the stock, obviously, it's had a rough year. We're down 35% year to date. Beyond earnings, Jason, are there certain dates that investors would have on the calendar as potential catalysts for this stock that you would look for?

JASON KUPFERBERG: I think it's less about specific dates. I think it's more about a path of potential catalysts and what that could look like, for example, would be some amount of reacceleration in the merchant facing seller side of the business from a gross profit growth perspective.

We do think that Q3 is going to feel some pressure, in part because of the platform outage that we saw in early September. We do think that there is the prospect for a little bit of reacceleration starting in the fourth quarter. The international side of the seller business is actually performing well, and the company has recently pivoted, their go-to market strategy to be more vertically oriented.

And that's a new change that started this past summer. We could see some results from that in a positive fashion into 2024. The other potential part of a catalyst path could be some more significant cost-cutting. Here at the company, we do think that as a result of a recent benchmarking exercise that we ran, there could be some real upside to the EBITDA performance of the business in 2024.

- And Jason, I think some investors in this space, you know, I think maybe some got a little spooked when French payments processing company Worldline cut its guidance that did make some people nervous. Is there any read through the square or not or no?

JASON KUPFERBERG: No read through from Worldline. They don't really have any operations in Germany. And that was the primary country that Worldline cited for weakness and other payments companies, US payments companies that have reported so far this earnings season have not identified that as a source of weakness either.

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SQ reports tonight

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Block Insider Bought Shares Worth $27,515,119, According to a Recent SEC Filing
5:49 PM ET, 11/13/2023 - MT Newswires
05:49 PM EST, 11/13/2023 (MT Newswires) -- Roelof Botha, Director, on November 08, 2023, executed a purchase for 540,646 shares in Block (SQ) for $27,515,119. Following the Form 4 filing with the SEC, Botha has control over a total of 1,265,158 shares of the company, with 24,044 shares held directly and 1,241,114 controlled indirectly.

SEC Filing:

https://www.sec.gov/Archives/edgar/data/1512673/000106299323020702/xslF345X03/form4.xml

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BTIG Upgrades Block to Buy From Neutral, Price Target at $85
7:54 AM ET, 01/30/2024 - MT Newswires

Wedbush Upgrades Block to Outperform From Neutral on Pricing Leverage, Raises PT to $90 From $70
7:22 AM ET, 01/30/2024 - MT Newswires

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Is Square Stock A Buy Ahead of Q4 Earnings, 2024 Guidance?

https://www.investors.com/news/technology/sq-stock-buy-now/?src=A00220

REINHARDT KRAUSE08:55 AM ET 02/05/2024

Many technology stocks outperformed in 2023 amid buzz over artificial intelligence technology. With a big rally following its third quarter earnings report, Square parent Block (SQ) and SQ stock finally joined the party. But Square stock started off 2024 poorly.

As of the market open on Feb. 5, SQ stock is down 12% in 2024.

Fourth quarter earnings for Square stock are due Feb. 22. "Following a Q3 2023 earnings print where SQ set investor expectations around midterm/long-term growth, attention has now returned to the company's near-term outlook amid a continually uncertain macro backdrop," said Deutsche Bank analyst Bryan Keane in a report. "While we expect minimal upside to Q4 gross profit numbers, we do see the potential for a strong beat on adjusted EBITDA and adjusted operating income as the company continues pulling levers to rein in costs. Importantly, Square will be updating its 2024 guidance."

For digital payment processor Block, the growth trajectory of Square's consumer Cash App is one issue. There's also cryptocurrency Bitcoin and the Afterpay acquisition. Also, Square faces growing competition on many fronts.

Further, Block in 2023 replaced the head of its merchant Square business, Alyssa Henry, with Block and Twitter founder Jack Dorsey.

At Morgan Stanley, analyst James Faucette in a report said Block's primary objective should be to drive consistent growth and free cash flow generation in the merchant Square business. If that happens, he added that will "in turn support the expansion of banking product development and adoption in Cash App to eventually become a key financial services provider for the Gen Z/Y population."

Block reported Q3 earnings and revenue that topped estimates. SQ stock jumped on preliminary 2024 guidance for earnings before interest, taxes, depreciation and amortization, a key metric known as EBITDA.

Meanwhile, Square stock gained 23% in 2023. The Nasdaq composite surged 43%. Also, SQ stock clawed back from a 52-week low of 38.85 set on Oct. 27.

SQ Stock: Cash App Growth

In its core businesses, Square stock aims to build a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers.

The Square Cash App helps individuals manage money, buy stocks and cryptocurrency, and more. Block aims to bridge the Cash App and merchant ecosystems with consumer financing services from Afterpay. Buy now, pay later firm Afterpay competes with Affirm Holdings (AFRM). It's evolving into a neo bank.

The Square Cash App, a peer-to-peer money-transfer service, competes with PayPal's Venmo, Zelle and others.

Square management has outlined a new long-term investment framework, which will put the company on the road to higher quality earnings under generally accepted accounting principles, often known as GAAP.

One bright spot: Square holds $5 billion on its balance sheet. In addition, Square stock uses a dual class structure of common stock, which gives insiders more voting power.

In late 2021, Square changed its name to Block, while retaining the ticker SQ. Meanwhile, the move reflected the company's commitment to blockchain technology, which underpins cryptocurrency.

Block Stock: Bitcoin Products

Block has aimed to build infrastructure that enables bitcoin-based commerce on its merchant platform. In addition, Square created a new business line to help developers build financial services products focused on Bitcoin.

In January, Square said its Bitcoin digital wallet was available for Cash App users in 95 countries.

"The product and platform aims to democratize and simplify access to self custody solutions for crypto assets, allowing users to own and manage their Bitcoin easily and securely, without relying on online custodians and hot wallets than can be compromised by bad actors," said Macquarie analyst Paul Golding in a report.

He added: "We think, if marketed broadly, the Bitkey platform could drive greater use of Cash App generally, but especially for crypto users."

Cash App user growth and monetization is key to the outlook for SQ stock. The company retains the Square brand for merchants that use its point-of-sale technology and services.

Also, some investors fear potential weakness in Square's point-of-sale business amid growing competitive pressures from Toast (TOST) in restaurants and Fiserv's (FISV) Clover unit generally.

SQ Stock: Afterpay Acquisition

Square and Marqeta (MQ) on Aug. 8 said they have renewed their transaction services agreement for Cash App and Afterpay.

In July, Bloomberg reported that Block is suing Visa (V) and Mastercard (MA) on antitrust grounds, alleging that both credit card networks are overcharging U.S. merchants through high cost interchange and merchant location fees.

In the event a U.S. recession eventually hits, one question is how resistant Square will be to a business downturn. The relatively low income levels of Square's customer base is one factor for investors to consider if the U.S. economy weakens, analysts say.

In a move to boost its Cash App business, Square in early 2022 closed the acquisition of Australia-based consumer lending startup Afterpay. "Buy now, pay later" (BNPL) companies such as Afterpay compete with credit card networks.

In another deal, Square acquired a majority stake in Jay-Z's Tidal music streaming service for $297 million in cash and stock.

Block Stock: Competition Heats Up

With multiple products, SQ stock faces stiff competition in both consumer financial apps and the small business market. Rivals include PayPal Holdings (PYPL), First Data's (FDC) Clover unit, Shopify (SHOP), merchant acquirers, and well-funded startup Stripe.

For merchants, Square makes credit-card readers that plug into mobile devices. Its Square Capital division provides loans to sellers.

With roots in serving such micromerchants as food trucks and farm-stand vendors, Square has moved "upmarket," targeting larger businesses.

In addition to selling credit-card readers, Square provides software for point-of-sale and back offices in order to manage inventory and other tasks.

Square recently focused on software products that can be used across many industries, such as invoicing, payroll and marketing. It also aims to integrate its payment tools into e-commerce platforms.

SQ Stock Fundamental Analysis

Square earnings for the period ended Sept. 30 were 55 cents per share on an adjusted basis, up 31% from the year-earlier period. Analysts had projected earnings of 47 cents a share.

Also, Square said net revenue rose 24% to $5.62 billion, including Cash App transactions for digital cryptocurrency Bitcoin. SQ stock analysts had predicted revenue of $5.42 billion.

Financial analysts also view gross profit as a key metric for SQ stock. Gross profit rose 21% to $1.9 billion, edging by estimates of $1.895 billion.

Cost-cutting boosted earnings before interest, taxes, depreciation and amortization, a key metric known as EBITDA. It jumped 46% to $477 million, handily beating estimates of $378 million.

For fiscal 2024, Square said it expects EBITDA of $2.4 billion, up about 44% from this year's estimated $1.67 billion. Analysts had projected 2024 EBITDA of $1.94 billion.

In Q3, gross payment volume from the transactions of merchant customers rose 11% to $55.7 billion, missing estimates of $61.14 billion.


Is Square Stock A Buy Or Sell Right Now?

SQ stock plunged about 61% in 2022.

Square's Relative Strength Rating stands at 80 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an 80 or better RS Rating.

The relative strength line, the blue line in the chart above, compares a stock's price performance with that of the S&P 500. A downward-trending RS line tells you the stock is underperforming the general market.

Block stock holds an IBD Composite Rating of 86 out of a best possible 99.

SQ stock, meanwhile, holds an Accumulation/Distribution Rating of B. The rating runs from a best-possible A+ to a worst-possible E. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading.

As of Feb. 5, SQ stock needs to build a base to be actionable.

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3 Reasons Growth Investors Like Cathie Wood Love Block Stock
Ryan Vanzo, The Motley Fool

Sat, February 17, 2024 at 5:45 AM MST·

https://finance.yahoo.com/m/6cbeafe4-cf7f-39a3-b69d-1129e251f2a3/3-reasons-growth-investors.html


Cathie Wood, the founder and CEO of Ark Invest, got her reputation by investing in tech companies with huge growth potential. One of her top holdings is Block (NYSE: SQ), with her Ark Innovation ETF owning around $500 million in shares, roughly 6% of its entire portfolio.

There's a lot to love about Block stock. If its growth potential is realized, shares could easily double, triple, or even quadruple in value. Why are growth investors like Cathie Wood betting so big on the company? There are three major factors.

1. It has high-quality exposure to Bitcoin

Buying stock in Block is one of the easiest ways to get exposure to the massive growth of cryptocurrencies like Bitcoin.

Previously, the company was known as Square, and it made most of its money helping small and medium-sized businesses facilitate payment processing and other business-related activities like scheduling and inventory. It also developed a particular focus on mobile payments through its Cash App. You may have used its services without knowing it; millions of small businesses adopted the company's phone and tablet accessories that enabled the acceptance of credit and debit card payments with minimal investment.

At the end of 2021, however, the company rebranded itself as Block to reflect its growing ambitions to become a major player in the blockchain industry. Today, the company is highly focused on riding the crypto wave. For example, it owns Spiral, which develops open-source apps to accelerate Bitcoin adoption; TBD, which creates developer ecosystems that make it easier to build with Bitcoin; and Cash App, which was expanded to allow anyone to transact in either conventional currencies or cryptocurrencies.

If demand for cryptocurrencies continues to rise, Block is positioned to be a primary beneficiary.

2. Block is getting closer to being profitable

Most high-growth companies struggle with profitability as they look to reinvest earnings as quickly as possible to expand. This reality is true for Block, or at least it was. Since 2016, the company has posted negative quarterly earnings a majority of the time. That's an acceptable reality for a while, but only as long as the market believes that the company is reinvesting its capital properly.

Over the last 12 to 24 months, many high-flying growth stocks have seen huge declines in share price as the market grew weary of supporting money-losing businesses. After posting one of its biggest quarterly losses in history last year, Block stock was also on the chopping block, though profits could soon be just around the corner.

In the second half of 2023, Block CEO Jack Dorsey laid out a new plan focused on profitable growth. The company, for example, would keep a cap on headcount, wind down some unprofitable businesses, and target a more efficient marketing spend. Within two years, Dorsey believes, Block can not only return to profitability, but also achieve long-term profitability margins that it has failed to sustain in the past. Owning around 11% of Block's shares -- the majority of his multibillion-dollar wealth -- Dorsey certainly has every incentive to make good on his promises.

3. Block shares finally look cheap

Because it is focused on high-upside opportunities, Block stock has rarely been a bargain. At times, shares traded as high as 15 times sales. Those who held the stock through the wild ups and downs have done quite well, with shares rising roughly 400% in value since 2016.

Today, shares trade near their lowest valuation in history thanks to the sell-off of high-growth tech stocks after the height of the COVID-19 pandemic. After the sell-off, the stock is valued at just 1.8 times sales. Compared to its long-term average price-to-sales multiple of 5.9, this appears to be quite a bargain.



High-growth stocks are known for their volatility. The market often falls in love with these companies, but when growth stutters, valuation multiples suddenly crash, causing share prices to follow suit.

As Block's long-term track record proves, however, patient investors willing to ride these highs and lows can make several times their initial investment over just a handful of years. With the stock now trading at a deep discount to its history with plenty of growth runway still ahead of it, it's no wonder high-profile investors like Cathie Wood are still heavily invested in Block.

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Is Square Stock A Buy Ahead of Q4 Earnings, 2024 Guidance?
https://www.investors.com/news/technology/sq-stock-buy-now/

REINHARDT KRAUSE09:40 AM ET 02/14/2024

Many technology stocks outperformed in 2023 amid buzz over artificial intelligence technology. With a big rally following its third quarter earnings report, Square parent Block (SQ) and SQ stock finally joined the party. But Square stock started off 2024 poorly.

As of the market open on Feb. 14, SQ stock is down 15% in 2024. Square stock trades below its 50-day moving average.

Fourth quarter earnings for Block stock are due Feb. 22.

For digital payment processor Block, the growth trajectory of Square's consumer Cash App is one issue. There's also cryptocurrency Bitcoin and the Afterpay acquisition. Also, Square faces growing competition on many fronts.

Further, Block in 2023 replaced the head of its merchant Square business, Alyssa Henry, with Block and Twitter founder Jack Dorsey.

Block reported Q3 earnings and revenue that topped estimates. SQ stock jumped on preliminary 2024 guidance for earnings before interest, taxes, depreciation and amortization, a key metric known as EBITDA.

Meanwhile, Square stock gained 23% in 2023. The Nasdaq composite surged 43%.

SQ Stock: Cash App Growth

In its core businesses, Square stock aims to build a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers.

The Square Cash App helps individuals manage money, buy stocks and cryptocurrency, and more. Block aims to bridge the Cash App and merchant ecosystems with consumer financing services from Afterpay. Buy now, pay later firm Afterpay competes with Affirm Holdings (AFRM). It's evolving into a neo bank.

The Square Cash App, a peer-to-peer money-transfer service, competes with PayPal's Venmo, Zelle and others.

Square management has outlined a new long-term investment framework, which will put the company on the road to higher quality earnings under generally accepted accounting principles, often known as GAAP.

One bright spot: Square holds $5 billion on its balance sheet. In addition, Square stock uses a dual class structure of common stock, which gives insiders more voting power.

In late 2021, Square changed its name to Block, while retaining the ticker SQ. Meanwhile, the move reflected the company's commitment to blockchain technology, which underpins cryptocurrency.

Block Stock: Bitcoin Products

Block has aimed to build infrastructure that enables bitcoin-based commerce on its merchant platform. In addition, Square created a new business line to help developers build financial services products focused on Bitcoin.

In January, Square said its Bitcoin digital wallet was available for Cash App users in 95 countries.

"The product and platform aims to democratize and simplify access to self custody solutions for crypto assets, allowing users to own and manage their Bitcoin easily and securely, without relying on online custodians and hot wallets than can be compromised by bad actors," said Macquarie analyst Paul Golding in a report.

He added: "We think, if marketed broadly, the Bitkey platform could drive greater use of Cash App generally, but especially for crypto users."

Cash App user growth and monetization is key to the outlook for SQ stock. The company retains the Square brand for merchants that use its point-of-sale technology and services.

Also, some investors fear potential weakness in Square's point-of-sale business amid growing competitive pressures from Toast (TOST) in restaurants and Fiserv's (FISV) Clover unit generally.

SQ Stock: Afterpay Acquisition

Square and Marqeta (MQ) on Aug. 8 said they have renewed their transaction services agreement for Cash App and Afterpay.

In July, Bloomberg reported that Block is suing Visa (V) and Mastercard (MA) on antitrust grounds, alleging that both credit card networks are overcharging U.S. merchants through high cost interchange and merchant location fees.

In the event a U.S. recession eventually hits, one question is how resistant Square will be to a business downturn. The relatively low income levels of Square's customer base is one factor for investors to consider if the U.S. economy weakens, analysts say.

In a move to boost its Cash App business, Square in early 2022 closed the acquisition of Australia-based consumer lending startup Afterpay. "Buy now, pay later" (BNPL) companies such as Afterpay compete with credit card networks.

In another deal, Square acquired a majority stake in Jay-Z's Tidal music streaming service for $297 million in cash and stock.

Block Stock: Competition Heats Up

With multiple products, SQ stock faces stiff competition in both consumer financial apps and the small business market. Rivals include PayPal Holdings (PYPL), First Data's (FDC) Clover unit, Shopify (SHOP), merchant acquirers, and well-funded startup Stripe.

For merchants, Square makes credit-card readers that plug into mobile devices. Its Square Capital division provides loans to sellers.

With roots in serving such micromerchants as food trucks and farm-stand vendors, Square has moved "upmarket," targeting larger businesses.

In addition to selling credit-card readers, Square provides software for point-of-sale and back offices in order to manage inventory and other tasks.

Square recently focused on software products that can be used across many industries, such as invoicing, payroll and marketing. It also aims to integrate its payment tools into e-commerce platforms.

SQ Stock Fundamental Analysis

Square earnings for the period ended Sept. 30 were 55 cents per share on an adjusted basis, up 31% from the year-earlier period. Analysts had projected earnings of 47 cents a share.

Also, Square said net revenue rose 24% to $5.62 billion, including Cash App transactions for digital cryptocurrency Bitcoin. SQ stock analysts had predicted revenue of $5.42 billion.

Financial analysts also view gross profit as a key metric for SQ stock. Gross profit rose 21% to $1.9 billion, edging by estimates of $1.895 billion.

Cost-cutting boosted earnings before interest, taxes, depreciation and amortization, a key metric known as EBITDA. It jumped 46% to $477 million, handily beating estimates of $378 million.

For fiscal 2024, Square said it expects EBITDA of $2.4 billion, up about 44% from this year's estimated $1.67 billion. Analysts had projected 2024 EBITDA of $1.94 billion.

In Q3, gross payment volume from the transactions of merchant customers rose 11% to $55.7 billion, missing estimates of $61.14 billion.

Is Square Stock A Buy Or Sell Right Now?

SQ stock plunged about 61% in 2022.

Square's Relative Strength Rating stands at 69 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an 80 or better RS Rating.

The relative strength line, the blue line in the chart above, compares a stock's price performance with that of the S&P 500. A downward-trending RS line tells you the stock is underperforming the general market.

Block stock holds an IBD Composite Rating of 93 out of a best possible 99.

SQ stock, meanwhile, holds an Accumulation/Distribution Rating of C-minus. The rating runs from a best-possible A+ to a worst-possible E. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading.

As of Feb. 14, SQ stock needs to build a base to be actionable.

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Square Earnings Report Mixed; Shares Rise On 2024 Outlook
FacebookTwitterLinkedInShare Licensing

REINHARDT KRAUSE01:44 PM ET 02/23/2024

https://www.investors.com/news/technology/sq-stock-square-earnings-q42023/?src=A00220

Square-parent Block (SQ) reported fourth-quarter earnings that missed estimates while revenue slightly beat as other financial metrics were mixed. Guidance for SQ stock came in above expectations, sending shares up on Friday.

For 2024, Square forecast gross profit of at least $8.65 billion versus consensus at $8.55 billion. Square said it expects adjusted EBITDA of at least $2.65 billion versus consensus at $2.4 billion.

"Guidance implies roughly 9% adjusted operating income margin expansion (roughly 3% better than previous company 2024 outlook) and 7% adjusted EBITDA margin expansion year-over-year," said Oppenheimer analyst Dominick Gabriele, in a report. "This significant margin expansion is likely the main driver of (the rally in Square stock)."

Block has told analysts it will cap its workforce size at 12,000. Also, Block plans to deprioritize international expansion of CashApp to focus on the U.S. market opportunity.

SQ Stock: Q4 Financial Results

Released after the market close on Thursday, Square earnings for the period ended Dec. 31 were 45 cents per share on an adjusted basis, up 109% from the year-earlier period. Analysts had projected earnings of 58 cents a share.

Also, Square said net revenue came in at $5.77 billion, including Cash App transactions for bitcoin. SQ stock analysts had predicted revenue of $5.69 billion.

On the stock market today, SQ stock popped 18.5% to 80.57 in afternoon action.

"Overall performance tracks to 'balanced growth' paired with rising profitability," said Susquehanna analyst James Friedman in a report.

Block Stock: EBITDA Growth

Financial analysts also view gross profit as a key metric for SQ stock. Gross profit rose 22% to $2.03 billion, edging by estimates of $1.97 billion.

Cost-cutting boosted earnings before interest, taxes, depreciation and amortization, a key metric known as EBITDA. It jumped 28% to $562 million versus estimates of $447.3 million.

In Q4, gross payment volume from the transactions of merchant customers rose 10% to $57.8 billion, missing estimates of $58.50 billion.

For the first quarter of 2024, Square said it expects EBITDA of $580 million. Analysts had projected March-ending quarter EBITDA of $515 million.


Square Stock: Merchant Business

"Despite its commitment to a leaner cost structure, we think the top-line story is set to improve over the course of 2024 as product velocity ramps up and the re-focused go-to-market strategy bears fruit," Jefferies analyst Trevor Williams said in a report.

SQ stock had retreated 13% in 2024 heading into the Block earnings report. San Francisco-based Block's earnings included consumer lending firm Afterpay.

Further, Block in 2023 replaced the head of its merchant Square business, Alyssa Henry, with Block and Twitter founder Jack Dorsey.

In its core businesses, Square stock aims to build a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers.

The Square Cash App helps individuals manage money, buy stocks and cryptocurrency, and more. Block aims to bridge the Cash App and merchant ecosystems with consumer financing services from Afterpay.

"Payments is becoming a smaller portion of Cash App revenue and banking revenue was stated to be a key driver of long-term Cash App growth and is expected to mix higher as a percentage of total Cash App gross profit over time," said Oppenheimer's Gabriele.

Meanwhile, Square stock holds a weak Relative Strength Rating of 62 out of a best-possible 99, according to IBD Stock Checkup.

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Jack Dorsey's plan to reshape Square
Kate Fitzgerald
Fri, February 23, 2024 at 12:50 PM MST·5 min read
https://finance.yahoo.com/news/jack-dorseys-plan-reshape-square-195021334.html

After retaking day-to-day control as CEO of Square last fall, Jack Dorsey, who also heads Square's parent company, Block, surprised analysts with fourth-quarter profits that exceeded expectations, in part through aggressive cost-cutting. And he's just getting started.

Next, Dorsey aims to overhaul the 15-year-old Square app so that it works more cleanly with Block's booming peer-to-peer Cash App to act like a bank for sellers and others.

Block's goal is for Cash App to become one of the top providers of banking services to U.S. households earning up to $150,000 annually. The company will beef up the financial tools it offers, and make the P2P app the go-to banking source for Square sellers, Dorsey told analysts during a conference call to discuss earnings Thursday.

"We're going to start putting our Square customers first and foremost in the Cash App, and you'll really see the power of our combined ecosystems and a combined network," Dorsey said, noting that Cash App P2P features position the entity to operate as a "social bank."

The plan hinges on expanding features within Block's Cash App and the Cash App Card to close the distance between its own offerings and those of a bank. Block plans to add mobile check deposit, bill payment and wire transfers, Dorsey said in a shareholder's letter also released Thursday.

Cash App already offers a Visa debit card, two-days-early direct deposit, cash deposits, instant discounts on debit spending and an FDIC-insured savings account with no minimum balance and free overdraft insurance. Cash App also offers short-term credit through Borrow, as well as stocks and bitcoin services. Its banking services are supported by Sutton Bank and Lincoln Savings Bank.

As Block's consumer banking ambitions expand, so will scrutiny of the firm's payments security and regulatory compliance. Reports recently circulated that two whistleblowers have filed a complaint with the Financial Crimes Enforcement Network, the Securities and Exchange Commission and the Commodities Futures Trading Commission about Cash App's potential use by criminals for money laundering and terrorism financing.

Dorsey told analysts that Block is investing more deeply in security and compliance this year, adding that it means "continued focus on risk and fraud management, including protecting our customers from bad actors who attempt to abuse our platform through vectors like scams and phishing attacks," but he did not directly confirm any regulatory probes. Block did not respond to emailed inquiries about this topic.

Many of Dorsey's moves are aimed at shoring up internal operations that had frayed over the last decade when Dorsey wasn't directly managing the company, culminating in the sudden exit last year of Square's longtime CEO Alyssa Henry.

Robert Anderson, a Square founder, is rejoining the company "to focus on making design at Square world-class again," Dorsey said.

A top priority this year will be tightening the integration across Square sellers, Cash App and Afterpay, the company's buy now/pay later arm. Block immediately plans to eliminate "four or five" different versions of the Square app that previously targeted different user groups, creating a single app called Square, with tabs for users to access services targeting sole proprietors or restaurants, for example.

Block also plans to promote Afterpay within Cash App by displaying BNPL offers there, and also by inviting Afterpay app users to fund BNPL purchases with the Cash App Card, he said.

To boost growth at Square, the firm is trying out a new "pay as you go" model, offering some sellers free point-of-sale hardware in exchange for a higher card-processing rate. Square is also offering restaurants a bundle of business-management software tools at a discounted rate, and offering sellers new incentives for referrals.

Asked about the possibilities for expanding Square distribution through banks, Dorsey noted that years ago Square partnered with JPMorgan Chase to distribute Square readers through Chase's bank branches and "it wasn't that effective."
Noting that some banks are succeeding in distributing mobile payment acceptance tools through branches, Dorsey said he's still open to the idea, but it's secondary to the immediate need to modernize Square itself, including through the use of generative AI.

"[AI] is going to be extremely impactful for us as we look at everything that we're doing and all the tools that we're building and how much more productive it makes all of our engineers," Dorsey said. Additionally, AI "allows us to ship faster, allows us to correct mistakes much faster and really be ahead of the market," he said.

Block's gross profit for the fourth quarter was $2 billion, up 22% over the same period a year earlier. Cash App generated $1.2 billion, up 25% year over year. Square alone contributed $828 million to gross profit, up 18% year over year.

For the full year, Block's gross profit was $7.5 billion, up 25% over 2022.

Block raised its 2024 profit forecast by more than $200 million, and the company now expects to produce gross profit of $8.65 billion, which would be 15% above 2023.

The company has also cut staff through layoffs and attrition so employees number under 12,000, a level Dorsey plans to keep in place for the next several years, he said.

"We sense that work is underway to enhance growth by improving product velocity," said analysts at JPMorgan in a Thursday note to investors, adding: "The overall momentum of Cash App is impressive."

[eastunder]

SQ gaps

UBS Adjusts Block Price Target to $95 From $70, Maintains Buy Rating
MT Newswires11:35:46 AM ET

Open Gaps
Direction Date range
up Feb-23-2024 68.44 to 78.47
up Feb-22-2024 65 to 65.65
up Nov-15-2023 55.33 to 55.45
up Nov-14-2023 52.21 to 53.82
up Nov-03-2023 44.1 to 48.4
up Nov-02-2023 41.1 to 42.78

[eastunder]

SQ +4.01 cpps 85.72
3/13/24

[eastunder]

SQ Gap at 68.44

[eastunder]

SQ

Benchmark Raises Block Price Target to $99 From $89, Maintains Buy Rating
08:46:34 AM ET, 04/04/2024 - MT Newswires

Morgan Stanley Downgrades Block to Underweight From Equalweight, Cuts Price Target to $60 From $62
07:57:01 AM ET, 04/04/2024 -

Open Gap up
2-23-24
$68.44

[eastunder]

Block Outlook Seen 'Favorable' With 'Attractive Opportunity' on Shares Before Q1 Results, BofA Says
11:55:30 AM ET, 04/22/2024 - MT Newswires
11:55 AM EDT, 04/22/2024 (MT Newswires) -- Block's (SQ) outlook is "favorable," and this year's pullback in shares presents a "particularly attractive opportunity" before Q1 results, BofA Securities said Monday in a note.

Gross profit in Q1 is expected to be in line with forecasts with 2024 guidance reiterated, BofA said. "Some EBITDA upside (flowed through to FY) would be a positive catalyst," the report said.

If [Block] can achieve its 2026 "Rule of 40" targets with mid-teens gross profit growth and mid-20% adjusted operating income margin, "we believe that shares could see significant multiple expansion," BofA said.

"Given ongoing expense discipline and a likely conservative margin guide," the company may raise its 2024 adjusted EBITDA and adjusted operating income outlook again, BofA said. "We tweak up our 2024 EBITDA estimate to $2.66 billion from $2.64 billion."

BofA reiterated its buy rating on Block with a price objective of $93. The company's results are scheduled for May 2.

[eastunder]

SQ

Gap & 200d
Supports
First : 69.8
Second : 58.08

[eastunder]

Market Chatter: Block Under Probe for Alleged Compliance Malpractices
10:46:23 AM ET, 05/01/2024 - MT Newswires

10:46 AM EDT, 05/01/2024 (MT Newswires) -- Block (SQ) is said to be under probe for alleged compliance lapses at its Square and Cash App units, NBC News reported Wednesday, citing two unnamed sources familiar with the matter.

NBC said prosecutors from the Southern District of New York are looking into the company's documents and internal practices after a former employee disclosed certain malpractices within the group. According to the former employee, Block collected insufficient information for Square and Cash App customers' risk assessment, Square processed thousands of transactions involving countries with economic sanctions, and Block processed cryptocurrency transactions for terrorist groups.

The former employee provided about 100 pages of supporting documents to NBC and said Block did not correct the processes when informed of the transactions, the report added. NBC said a second source familiar with the company's practices and monitoring programs backed the former employee's allegations.

According to NBC, a Block spokeswoman said the company voluntarily reported the transactions described by the former employee to the Office of Foreign Assets Control under the US Treasury and that the company maintains a "responsible and extensive compliance program."

Block did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

[eastunder]

Block expected to post blowout Q1 earnings on back of strong outlook

https://www.msn.com/en-us/money/markets/block-expected-to-post-blowout-q1-earnings-on-back-of-strong-outlook/ar-AA1nZPoP?ocid=BingNewsSerp

Block (NYSE:SQ), the Square and Cash App parent company, is expected to record an increase in both earnings and revenue when it reports first-quarter 2024 results on Wednesday after market close.

The average sell-side analyst sees Q1 adjusted EPS jumping to $0.73 from $0.46 in the previous quarter and $0.40 in the year-earlier period. Total net revenue, too, is forecast to advance to $5.82B from $5.77B in Q4 2023 and $4.99B in Q1 2023.

Jefferies analyst Trevor Williams is calling for another consensus beat on gross profit and EBITDA, though “we see less potential for a major [positive] surprise.

“Despite that, we expect this qtr. to further underscore SQ’s new era of focus and efficiency (faster product velocity on slower expenses growth) and see plenty that can support the bull case for sustainable mid-teens+ growth,” he wrote in a note to clients Monday.
In February, investors bid up the SQ greatly after the payment and fintech app company said it plans to grow its business by getting Cash App users to bank with it, moving up market to service families, and building the next-generation social bank. That announcement was accompanied by an increase in Block’s (SQ) full-year 2024 adjusted EBITDA guidance to above Wall Street expectations.

“For the full year, management issued an ‘at least’ guide, meaning Block could very likely produce far better results than its guidance,” said SA analyst Riyado Sofian. Even if Block (SQ) doesn’t outpace expectations and easily top its guidance, as Sofian believes will be the case, it “still has a long growth runway ahead as Square and Cash App combined have less than 5% market penetration today, with over $205B of Gross Profit opportunity up for grabs.”

Block (SQ) has a solid track record in exceeding earnings expectations, with eight of the last twelve quarterly earnings coming in above consensus. Wall Street has been quite bullish on the profit outlook, with 20 upward EPS revisions over the last three months, compared with just four downward revisions. The revenue outlook was a little more iffy (13 upward revisions vs. eight downward revisions).

Bank of America contended in a recent note that a positive catalyst could include in-line gross profit, with 2024 guidance reiterated, and some EBITDA upside, when SQ discloses Q1 results Wednesday.

Separately, shares of Oakland, California-based Block (SQ) dropped 9.2% in Tuesday midafternoon trading at least partly amid a report that federal prosecutors are examining financial transactions at the company

[eastunder]

SQ 64.50 Gap

[eastunder]

SQ cpps 64.23

[eastunder]

Square Q2 Earnings Report Due Aug. 1. Is Block A Buy on Cash App Outlook?
FacebookTwitterLinkedInShare Licensing

https://www.investors.com/news/technology/sq-stock-buy-now/?src=A00220

REINHARDT KRAUSE08:55 AM ET 07/09/2024

Square parent Block (SQ) has put Cash App banking services at the center of investor attention. But the direction of the merchant business of SQ stock also remains key to future performance.

In its core businesses, Square aims to build a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers.

As of July 9, Square stock has retreated 17% this year. SQ stock trades near its 50-day moving average. Some technical ratings have improved.

Second quarter earnings for Block stock are due Aug. 1.

Square Stock: Cash App Growth

For digital payment processor Block, the growth trajectory of Square's consumer Cash App is one issue. There's also cryptocurrency Bitcoin and the Afterpay acquisition.

"Cash App now makes up about 60% of total company gross profit (including Afterpay)," said UBS analyst Timothy Chiodo in a report.

"As to future potential, with Cash App's scale recently reaching 57 million monthly active users, a subset of investors have questioned whether the most addressable portion of the user base has already been penetrated to a considerable degree — placing greater emphasis on monetization ahead. We believe that Cash App's banking services are generally best suited for lower income, younger individuals, with higher income individuals more likely to be well-served by traditional financial institutions and have more complex needs."

Also, Square faces growing competition on many fronts. Further, Block in 2023 replaced the head of its merchant Square business, Alyssa Henry, with Block and Twitter founder Jack Dorsey.

The Square Cash App helps individuals manage money, buy stocks and cryptocurrency, and more. Block aims to bridge the Cash App and merchant ecosystems with consumer financing services from Afterpay. Buy now, pay later firm Afterpay competes with Affirm Holdings (AFRM) and many others.

The Square Cash App, a peer-to-peer money-transfer service, competes with PayPal's Venmo, Zelle and others.

Block Stock: Bitcoin Products

In late 2021, Square changed its name to Block, while retaining the ticker SQ. Meanwhile, the move reflected the company's commitment to blockchain technology, which underpins cryptocurrency.

Block has aimed to build infrastructure that enables bitcoin-based commerce on its merchant platform. In addition, Square created a new business line to help developers build financial services products focused on Bitcoin.

In January, Square said its Bitcoin digital wallet was available for Cash App users in 95 countries.

Amid the name change, the company retains the Square brand for merchants that use its point-of-sale technology and services.

Also, some investors fear potential weakness in Square's point-of-sale business amid growing competitive pressures from Toast (TOST) in restaurants and Fiserv's (FISV) Clover unit generally.

SQ Stock: Afterpay Acquisition

Square and Marqeta (MQ) in 2023 said they have renewed their transaction services agreement for Cash App and Afterpay.

In 2023, Block sued Visa (V) and Mastercard (MA) on antitrust grounds, alleging that both credit card networks are overcharging U.S. merchants through high cost interchange and merchant location fees.

In the event a U.S. recession eventually hits, one question is how resistant Square will be to a business downturn. The relatively low income levels of Square's customer base is one factor for investors to consider if the U.S. economy weakens, analysts say.

In a move to boost its Cash App business, Square in early 2022 closed the acquisition of Australia-based consumer lending startup Afterpay. "Buy now, pay later" (BNPL) companies such as Afterpay compete with credit card networks.

In another deal, Square acquired a majority stake in Jay-Z's Tidal music streaming service for $297 million in cash and stock.

Block Stock: Competition Heats Up

In 2023, Square management outlined a new long-term investment framework, which will put the company on the road to higher quality earnings under generally accepted accounting principles, often known as GAAP.

One bright spot: Square holds $5 billion on its balance sheet. In addition, Square stock uses a dual class structure of common stock, which gives insiders more voting power.

With multiple products, SQ stock faces stiff competition in both consumer financial apps and the small business market. Rivals include PayPal Holdings (PYPL), First Data's (FDC) Clover unit, Shopify (SHOP), merchant acquirers, and well-funded startup Stripe.

For merchants, Square makes credit-card readers that plug into mobile devices. Its Square Capital division provides loans to sellers.

With roots in serving such micro-merchants as food trucks and farm-stand vendors, Square has moved "upmarket," targeting larger businesses.

In addition to selling credit-card readers, Square provides software for point-of-sale and back offices in order to manage inventory and other tasks.

Square recently focused on software products that can be used across many industries, such as invoicing, payroll and marketing. It also aims to integrate its payment tools into e-commerce platforms.

SQ Stock Fundamental Analysis

Square earnings for the period ended March 31 were 74 cents per share on an adjusted basis, up 85% from the year-earlier period. Analysts had projected earnings of 72 cents a share.

Also, Square said net revenue came in at $5.96 billion, up 19% from a year earlier, including Cash App transactions for bitcoin. Square stock analysts had predicted revenue of $5.83 billion.

Financial analysts also view gross profit as a key metric for SQ stock. In Q1, gross profit rose 22% to $2.09 billion vs. estimates of $2.02 billion.

Cost-cutting boosted earnings before interest, taxes, depreciation and amortization, a key metric known as EBITDA. It came in at $705 million vs. estimates of $591 million.

In Q1, gross payment volume from the transactions of merchant customers rose 9% to $50.5 billion, below estimates of $55.81 billion.

For the second quarter of 2024, Square said it expects EBITDA of $680 million. Analysts had projected June-quarter EBITDA of $648 million.

In Q2, Square forecast gross profit of $2.175 billion, roughly in line with estimates.

Is Square Stock A Buy Right Now?

SQ stock plunged about 61% in 2022. Meanwhile, Square stock gained 23% in 2023. The Nasdaq composite surged 43%.

Square's Relative Strength Rating stands at only 35 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an 80 or better RS Rating.

The relative strength line, the blue line in the chart above, compares a stock's price performance with that of the S&P 500. A downward-trending RS line tells you the stock is underperforming the general market.

Block stock holds an IBD Composite Rating of 73 out of a best possible 99.

SQ stock, meanwhile, holds an Accumulation/Distribution Rating of C-minus. The rating runs from a best-possible A+ to a worst-possible E. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading.

As of July 9, SQ stock holds an entry point of 80.29 from a cup base. It trades well below the entry point.

[eastunder]

SQ cpps 64.51

[eastunder]

Block Claws Back Above 50-Day Line. Is Square Stock A Buy?
REINHARDT KRAUSE08:59 AM ET 08/19/2024

Some technical ratings for Square parent Block (SQ) have improved. And, Square stock has clawed back above its 50-day moving average. Both Cash App growth and the direction of the merchant business remain key to SQ stock. There's also cryptocurrency Bitcoin and the Afterpay consumer financing business.

In its core businesses, Square aims to build a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers.

For the June quarter, Block reported EPS that topped estimates while revenue came in light. Gross profit and adjusted EBITDA beat Wall Street targets.

For 2024, the company raised its gross profit outlook to $8.89 billion, up from prior $8.78 billion. The company said Afterpay CEO and co-founder Nick Molnar will lead a new a centralized sales function.

"Square has become re-focused on improving day-to-day execution, especially in the Square (formerly known as Seller) business to drive Square gross payment volume re-acceleration," said Bank of America analyst Jason Kupferberg in a report. "This remains the most critical metric for shares, and we believe that newer product/go-to-market initiatives should start bearing fruit in 2025."

Meanwhile, Square stock has retreated nearly 15% in 2024. Shares hit a 52-week low on Aug. 5.

While Block's valuation has dropped, IBD doesn't put much weight on P/E ratios and other valuation metrics. On the other hand, here are some time-tested trading rules.

Square Stock: Cash App Growth

Also, Square faces growing competition on many fronts. Further, Block in 2023 replaced the head of its merchant Square business, Alyssa Henry, with Block and Twitter founder Jack Dorsey.

Also, some investors fear potential weakness in Square's point-of-sale business amid growing competitive pressures from Toast (TOST) in restaurants and Fiserv's (FISV) Clover unit generally.

The Square Cash App helps individuals manage money, buy stocks and cryptocurrency, and more. New banking services may be key to Cash App's growth.

Block aims to bridge the Cash App and merchant ecosystems with consumer financing services from Afterpay. Buy now, pay later firm Afterpay competes with Affirm Holdings (AFRM) and many others.

The Square Cash App, a peer-to-peer money-transfer service, competes with PayPal's Venmo, Zelle and others.

In late 2021, Square changed its name to Block, while retaining the ticker SQ. Meanwhile, the move reflected the company's commitment to blockchain technology, which underpins cryptocurrency.

Block has aimed to build infrastructure that enables bitcoin-based commerce on its merchant platform. In addition, Square created a new business line to help developers build financial services products focused on Bitcoin.

In January, Square said its Bitcoin digital wallet was available for Cash App users in 95 countries.

SQ Stock: Afterpay Acquisition

Square and Marqeta (MQ) in 2023 said they have renewed their transaction services agreement for Cash App and Afterpay.

In 2023, Block sued Visa (V) and Mastercard (MA) on antitrust grounds, alleging that both credit card networks are overcharging U.S. merchants through high cost interchange and merchant location fees.

In the event a U.S. recession eventually hits, one question is how resistant Square will be to a business downturn. The relatively low income levels of Square's customer base is one factor for investors to consider if the U.S. economy weakens, analysts say.

In a move to boost its Cash App business, Square in early 2022 closed the acquisition of Australia-based consumer lending startup Afterpay. "Buy now, pay later" (BNPL) companies such as Afterpay compete with credit card networks.

In another deal, Square acquired a majority stake in Jay-Z's Tidal music streaming service for $297 million in cash and stock.

Block Stock: Competition Heats Up

In 2023, Square management outlined a new long-term investment framework, which will put the company on the road to higher quality earnings under generally accepted accounting principles, often known as GAAP.

One bright spot: Square holds $5 billion on its balance sheet. In addition, Square stock uses a dual class structure of common stock, which gives insiders more voting power.

With multiple products, SQ stock faces stiff competition in both consumer financial apps and the small business market. Rivals include PayPal Holdings (PYPL), First Data's (FDC) Clover unit, Shopify (SHOP), merchant acquirers, and well-funded startup Stripe.

For merchants, Square makes credit-card readers that plug into mobile devices. Its Square Capital division provides loans to sellers.

With roots in serving such micro-merchants as food trucks and farm-stand vendors, Square has moved "upmarket," targeting larger businesses.

In addition to selling credit-card readers, Square provides software for point-of-sale and back offices in order to manage inventory and other tasks.

Square recently focused on software products that can be used across many industries, such as invoicing, payroll and marketing. It also aims to integrate its payment tools into e-commerce platforms.

Is Square Stock A Buy Right Now?

Square's Relative Strength Rating stands at 42 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an 80 or better RS Rating.

The relative strength line, the blue line in the chart above, compares a stock's price performance with that of the S&P 500. A downward-trending RS line tells you the stock is underperforming the general market.

Block stock holds an IBD Composite Rating of 77 out of a best possible 99.

SQ stock, meanwhile, holds an Accumulation/Distribution Rating of C-minus. The rating runs from a best-possible A+ to a worst-possible E. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading.

As of Aug. 19, SQ stock is not actionable. It needs to form a proper base.

[eastunder]

SQ reports 11/7 A cpps 78.01

cup and handle pivot 75.00 164 days

Fnsh/up in T & H

[eastunder]

Block shares tumble on revenue miss
Investing.com
Thu, November 7, 2024 at 2:28 PM MST 1 min read

https://finance.yahoo.com/news/block-shares-tumble-revenue-miss-212826207.html

Block (NYSE:SQ) reported third-quarter earnings that met expectations, but revenue fell short of analyst estimates, sending shares down 10% in after-hours trading.

The financial technology company, formerly known as Square, reported adjusted earnings per share of $0.88, in line with analyst projections. However, revenue for the quarter came in at $5.98 billion, missing the consensus estimate of $6.24 billion.

Despite the revenue shortfall, Block saw strong growth in its key business segments. Gross profit grew 19% YoY to $2.25 billion, with Cash App generating $1.31 billion in gross profit, up 21% YoY, and Square contributing $932 million, a 16% YoY increase.

"We outperformed our gross profit and profitability guidance in the third quarter of 2024," said CEO Jack Dorsey. "Cash App continued its strong performance, driven primarily by growth in inflows per active and an increase in monetization rate."

Block reported operating income of $323 million and adjusted operating income of $444 million for the quarter. The company's adjusted operating income margin expanded to 20%, reflecting strong growth and disciplined expense management.

For the full year, Block maintained its gross profit guidance of at least $8.89 billion, representing 18% YoY growth. The company raised its full-year outlook for adjusted operating income to at least $1.56 billion, or an 18% margin.

[eastunder]

SQ close 75.27
curr afterhours 68.10

Takes it to the fin and below
50d tag at 68.70

Supports First : 70.23 Second : 65.37

[eastunder]

Block Inc (SQ) Q3 2024 Earnings Call Highlights: Record Profitability and Strategic Growth ...

GuruFocus News
Fri, November 8, 2024 at 12:34 AM MST 3 min read

https://finance.yahoo.com/news/block-inc-sq-q3-2024-073436126.html


Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points
Block Inc (NYSE:SQ) reported a 19% year-over-year increase in gross profit, reaching $2.25 billion, with significant growth in both Square and Cash App segments.

The company achieved its highest quarterly profitability ever, with improvements in adjusted operating income and adjusted EBITDA.

Block Inc (NYSE:SQ) raised its full-year 2024 guidance for adjusted operating income and adjusted EBITDA, indicating strong financial performance.

The company is seeing strong momentum in Cash App, with improved attach rates on paycheck deposits and other financial products.

Block Inc (NYSE:SQ) is investing in growth opportunities, particularly in go-to-market strategies, to drive further expansion in 2025.

Negative Points
There are discrete items impacting gross profit growth, such as delays in transaction cost benefits and expansion of Cash App Borrow, which are now expected to materialize in 2025.

The company faces regulatory uncertainties in the fintech and banking sectors, which could impact its operations and growth strategies.

Block Inc (NYSE:SQ) is experiencing moderated growth in monthly active users for Cash App, with expectations to end the year at around 57 million, indicating challenges in user acquisition.

The company is making deliberate trade-offs in new active growth to focus on engagement and platform health, which may impact short-term user growth metrics.

Block Inc (NYSE:SQ) is still in the early stages of rolling out new products like Afterpay on Cash App Card, indicating potential delays in realizing full benefits from these initiatives.

Q & A Highlights
Warning! GuruFocus has detected 9 Warning Signs with SQ.

Q: Can you provide more details on the expected growth acceleration for Square's GPV in the U.S. next year? A: Amrita Ahuja, CFO, explained that they expect modestly improved growth in the fourth quarter relative to the second quarter and further acceleration into 2025. This confidence is based on recent improvements in year-over-year Square GPV growth each month since July through October, driven by same-store growth across verticals and encouraging trends in customer acquisitions.

Q: Could you elaborate on the field sales strategy for Square and its expected impact? A: Amrita Ahuja, CFO, mentioned that they have their first group of dedicated field sales reps in the market and plan to continue hiring. This strategy is expected to support brand perception and partnership marketing. They have seen a 10% to 20% improvement in per rep productivity year-to-date and believe there is more opportunity to increase this further.

Q: How is Block addressing regulatory challenges in the fintech banking sector? A: Jack Dorsey, CEO, emphasized the focus on building stronger systems and leveraging technology to stay ahead of regulatory changes. They are investing in compliance programs and building redundancy across their business to ensure resilience in an evolving regulatory environment.

Q: What are the key factors affecting Q4 gross profit guidance, and when might these impacts materialize? A: Amrita Ahuja, CFO, noted two key factors: a delay in partner benefits affecting transaction costs and the shift of Cash App Borrow expansion to new customer segments into 2025. These are expected to materialize during 2025, with borrow being used as an incentive to drive paycheck deposit adoption.

Q: How is Cash App balancing user growth with ARPU expansion, and what are the trends in monthly active users? A: Amrita Ahuja, CFO, stated that Cash App had 57 million monthly actives, consistent with the previous quarter, with a focus on engagement and ARPU growth. They expect moderated growth in actives, focusing on driving product adoption and share of wallet, with ARPU growing 16% year-over-year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

[eastunder]

Block stock is a new Buy at Piper Sandler after 'impressive' Q3 results
Investing.com
Mon, November 11, 2024 at 8:15 AM MST 2 min read

https://finance.yahoo.com/news/block-stock-buy-piper-sandler-151510388.html

Investing.com - Analysts at Piper Sandler have assumed coverage of shares of Block Inc (NYSE:SQ) with an Overweight rating and a $83 price target following the payment company’s Q3 results last week. On Monday, SQ shares were trading at $79.59, up 6.74% since Friday’s close.

Last week, Block reported Q3 earnings per share (EPS) of $0.88, in line with consensus estimates, and revenue of $5.98 billion, falling short of expectations for $6.24B.

Despite this, the analysts have taken note of the company’s “impressive” margin results. “SQ posted top line results that came in softer than expected during the third quarter… Conversely, Block achieved adjusted EBITDA results that came in much healthier than expected,” Piper Sandler observed.

The firm’s price target is based on a 19x CY25E EPS estimate. Block, which has “a robust track record” of innovation is expected to continue to innovate in the software-enabled payment ecosystem.

“We believe that Block should benefit from a continued secular shift to electronic payments, as well as being on the forefront of innovation, organized around its two business segments, which are centered around merchants/sellers (Square) and consumers (Cash App),” the analysts said.

Square, which represents 34% of Q3 revenues, 12% growth (FY23) and 47% gross margins (Q3), has “significant runway of growth” according to Piper Sandler, with an addressable market size of $130B+. The key metric the analysts said they will be focused on is gross payment volume (GPV) in addition to revenue growth and margin profile.

Meanwhile, CashApp represents 66% of revenues, 33% growth and 33% gross margins. With an addressable market size of $75B+, this part of the business too has room to grow. Piper will be focussed on revenue growth, margin profile and active user dynamics to assess progress.

“In our view, with these scaled ecosystems, Block has a unique opportunity to cross-pollinate its offerings between its business and consumer ecosystems. The company has made investments to unlock this opportunity, including its Afterpay (BNPL) acquisition. Further, we believe that its early entry into Bitcoin has the potential to provide it upside in an emerging ecosystem,” the firm added.

[eastunder]

SQ cpps at 90.33 last seen on 8/11/22

[eastunder]

Block Upgraded On Merchant Business Outlook. Is Square Stock A Buy?
https://www.investors.com/news/technology/sq-stock-buy-now/?src=A00220

REINHARDT KRAUSE08:35 AM ET 01/03/2025
Square-parent Block (SQ) rallied on its third-quarter earnings report. But the 2024 performance of SQ stock still lagged versus that of PayPal Holdings (PYPL), Shift4 Payments (FOUR) and Affirm Holdings (AFRM).

In its core businesses, Square aims to build a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers.

For investors in SQ stock, the 2025 outlook on gross payment volume in the U.S. merchant business looms as key as well as consumer Cash App growth.

SQ Stock: Merchant Business
Raymond James analyst John Davison Jan. 3 upgraded SQ stock to outperform from market perform on views that the outlook for merchant GPV will improve in 2025.

"We have a high degree of confidence that Seller GPV can accelerate into the double-digits in 2025," he said in a report. "That said, we acknowledge Cash App is a bit of a wild card given net new actives have been flat over the last two quarters."

He said the merchant business should get a boost from new distribution deals, international expansion, and "product innovation."

"Even when assuming a material deceleration in banking-related gross profit, we see modest upside to the Street's +14% Seller gross profit growth estimate in 2025," he added.

In a recent report on Square's merchant business, Jefferies analyst Trevor Williams said: "While competition continues to intensify, we're confident that SQ's recent initiatives (fixing key product gaps; improved go-to-market with app consolidation, distribution partnerships, outbound sales hiring) will lead to higher win rates and support a step up in the pace of share gains."

Block Stock: Bitcoin Factor
Block stock has gained 10% in 2024 following a rally on its Q3 earnings report. Shares rose to 99.26 on Dec. 5 amid big gains for cryptocurrency bitcoin. But Square stock retreated during December.

"SQ's stock has historically shown periods of high correlation with the price of bitcoin, but BTC-related activities are a very small
part of the overall business and a limited growth contributor even in periods of high volatility," said Morgan Stanley analyst James Faucette in a recent report. "Bitcoin-related gross profit still only makes up 3.5% of the total business."

Meanwhile, cryptocurrency prices have been volatile.

Square Stock: Stiff Competition
Square faces growing competition on many fronts. In 2023, Block replaced the head of its merchant Square business, Alyssa Henry, with Block and Twitter founder Jack Dorsey.

Also, some investors fear potential weakness in Square's point-of-sale business amid growing competitive pressures from Toast (TOST) in restaurants and Fiserv's (FISV) Clover unit generally.

The Square Cash App helps individuals manage money, buy stocks and cryptocurrency, and more. New banking services may be key to Cash App's growth.

Block aims to bridge the Cash App and merchant ecosystems with consumer financing services from Afterpay. Square in early 2022 closed the acquisition of Australia-based consumer lending startup Afterpay. "Buy now, pay later" (BNPL) companies such as Afterpay compete with credit card networks.

The Square Cash App, a peer-to-peer money-transfer service, competes with PayPal's Venmo, Zelle and others.

In late 2021, Square changed its name to Block, while retaining the ticker SQ. Meanwhile, the move reflected the company's commitment to blockchain technology, which underpins cryptocurrency.

Block has aimed to build infrastructure that enables bitcoin-based commerce on its merchant platform. In addition, Square created a new business line to help developers build financial services products focused on Bitcoin.

In January, Square said its Bitcoin digital wallet was available for Cash App users in 95 countries.

Block Stock: Moving Up-Market
In 2023, Square management outlined a new long-term investment framework, which will put the company on the road to higher quality earnings under generally accepted accounting principles, often known as GAAP.

For merchants, Square makes credit-card readers that plug into mobile devices. Its Square Capital division provides loans to sellers.

With roots in serving such micro-merchants as food trucks and farm-stand vendors, Square has moved "upmarket," targeting larger businesses.

In addition to selling credit-card readers, Square provides software for point-of-sale and back offices in order to manage inventory and other tasks.

Square focuses on software products that can be used across many industries, such as invoicing, payroll and marketing. It also aims to integrate its payment tools into e-commerce platforms.


Is Square Stock A Buy Right Now?
Square's Relative Strength Rating stands at 89 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an 80 or better RS Rating.

The relative strength line, the blue line in the chart above, compares a stock's price performance with that of the S&P 500. A downward-trending RS line tells you the stock is underperforming the general market.

Block stock holds an IBD Composite Rating of 97 out of a best possible 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths.

SQ stock, meanwhile, holds an Accumulation/Distribution Rating of B. The rating runs from a best-possible A+ to a worst-possible E. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading.

As of Jan. 3, SQ stock needs to find support at its 50-day moving average. Block stock does not have an entry point and is not in a buy zone. Square stock needs to form a base to be actionable.

While Block's valuation has dropped, IBD doesn't put much weight on P/E ratios and other valuation metrics. On the other hand, here are some time-tested trading rules.

[eastunder]

SQ gap 87.55

[eastunder]

Block Announces Ticker Symbol Change to XYZ; To Report Fourth Quarter Results
January 09, 2025 04:05 PM Eastern Standard Time

DISTRIBUTED-WORK-MODEL/OAKLAND, Calif.--(BUSINESS WIRE)--Block, Inc. (NYSE: SQ) announced today that it will be changing its ticker symbols from “SQ” and “SQ2” to “XYZ”. This is in connection with the company’s earlier name change to “Block” and its ecosystem of brands including Cash App, Square, Afterpay and TIDAL. The change will be implemented across the company’s dual listings on the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX). Effective January 21, 2025, the company’s Class A common stock will trade on the NYSE under the new symbol “XYZ”. Effective January 22, 2025, the company’s ticker code on the ASX will also change to “XYZ”.

There is no action required by the company’s shareholders with respect to the ticker symbol change. The company’s Class A common stock will continue to be listed on the NYSE and the company’s CHESS Depository Interests (CDIs) will continue to be listed on the ASX. The CUSIP for the NYSE listing and the ISIN for the ASX listing will remain unchanged.

Webcast and Conference Information

Block also announced it will release financial results for the fourth quarter of 2024 on Thursday, February 20, 2025, after market close. The company will also host a conference call and earnings webcast at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time on the same day to discuss these results. To register to participate in the conference call, or to listen to the live audio webcast, please visit the Events & Presentations section of Block’s Investor Relations website at investors.block.xyz. A replay will be available at the same website following the call.

About Block

Block, Inc. (NYSE: SQ), builds technology to increase access to the global economy. Each of our brands unlocks different aspects of the economy for more people. Square makes commerce and financial services accessible to sellers. Cash App is the easy way to spend, send, and store money. Afterpay is transforming the way customers manage their spending over time. TIDAL is a music platform that empowers artists to thrive as entrepreneurs. Bitkey is a simple self-custody wallet built for bitcoin. Proto is a suite of bitcoin mining products and services. Together, we’re helping build a financial system that is open to everyone. Block.xyz

Contacts
Media Contact
[e-mail]

Investor Relations Contact
[e-mail]

[eastunder]

XYZ

1-21-25

89.50

Block Inc (Nyse: XYZ)

SEC, nasdaq, ShortSqueeze

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