
Block shares tumble after 2025 profit forecast cut
May 2 (Reuters) - Block's (XYZ.N), opens new tab shares fell 22% on Friday, hitting their lowest since November 2023 after the payments firm cut its profit forecast for the year.
At least eight brokerages reduced their price targets on the stock, citing softness at the company's peer-to-peer Cash App and mounting competitive pressures.
The stock was last trading at $45.71.
Block's forecast cut comes amid a delicate time for the economy, with uncertainty sparked by President Donald Trump's tariffs raising fears of a slowdown in consumer spending.
Data released earlier this week also showed the U.S. economy had contracted in the first quarter, potentially weakening sentiment further.
After market close on Thursday, Jack Dorsey-led Block lowered its forecast for 2025 gross profit growth to 12% from 15%, while projecting second-quarter gross profit at $2.45 billion which was below Wall Street estimates of $2.54 billion.

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Reuters
43 minutes ago
- Reuters
OPEC oil output in May rises less than planned, Reuters survey finds
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Wales Online
an hour ago
- Wales Online
DWP confirms group that won't have £300 winter fuel payment restored under new rules
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However, after its election victory last year the new Labour-led UK government announced it would start means-testing the payments to restrict them to those on benefits and pension credit in an effort to save money. The decision was widely criticised as targeting some of the most vulnerable and was said to have had an impact on the party's disastrous local elections performance. Article continues below In recent weeks the government confirmed a partial U-turn on its policy with Chancellor Rachel Reeves confirming that more pensioners will receive the winter fuel allowance this year but payments would not be universal. Ms Reeves told reporters at a press conference that "more people will get winter fuel payment this winter", adding that further details will be announced "as soon as we possibly can." What is changing now under the new rule? The changes, officially announced on Monday, June 9, will see all pensioners in England and Wales with an income of or below £35,000 a year receive a winter fuel payment. This extends eligibility to the vast majority of pensioners, with around nine million or over three quarters benefitting, ministers said on Monday. This change will cost around £1.25 billion in England and Wales and see means-testing of the Winter Fuel Payment save around £450 million, subject to certification by the Office for Budget Responsibility compared to the system of universal winter fuel payments. The costs will be accounted for at the Budget and incorporated into the next OBR forecast. Addressing potential questions about how the change will be funded, the government said it would "take decisions on funding in the round at that forecast to ensure the government's non-negotiable fiscal rules are met", adding that it would "not lead to permanent additional borrowing." 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This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter.' Pensioners above the £35,000 threshold - around two million people in England and Wales - will have the full amount of the winter fuel payment they received automatically collected via PAYE or via their self-assessment return. No one will need to register with HMRC for this or take any further action. Pensioners who want to opt out and not receive the payment at all will be able to do so, with details to be confirmed. Article continues below


The Independent
an hour ago
- The Independent
US and China are holding trade talks in London after Trump's phone call with Xi
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