Latest news with #Bitkey
Finextra
6 days ago
- Business
- Finextra
Block rolls out bitcoin payments on Square
Block is adding real-time bitcoin payments to its Square point-of-sale terminals. 0 The new feature - set to start rolling out later this year - leverages the Lightning Network to enable merchants to accept bitcoin payments directly through their Square hardware. To make a payment, customers scan a QR code at checkout, with the Lightning Network protocol ensuring near-instant settlement while Square's integration handles real-time exchange rate calculations and confirmation notifications. The native Bitcoin For Businesses offering builds on Block's Bitcoin Conversions feature launched in 2024, which allows qualified merchants to automatically convert a portion of their daily sales into bitcoin. Miles Suter, bitcoin product lead, Block, says: 'When a coffee shop or retail store can accept bitcoin through Square, small businesses get paid faster, and get to keep more of their revenue. This is about economic empowerment for merchants who like to have options when it comes to accepting payments.' Under bitcoin-fan founder Jack Dorsey, Block has embraced crypto with a range of services, including Cash App's bitcoin buy, sell, and transfer capabilities, the Bitkey self-custody bitcoin wallet, and the Proto suite of bitcoin mining products and services.
Yahoo
25-05-2025
- Business
- Yahoo
After 5 Years of Holding, Here's Why I Reluctantly Just Sold These 2 Stocks (and What I'm Looking for Now)
Block isn't the same company that I invested in back in 2020, making me uneasy about its long-term vision. Pinterest is growing but it's not growing the way I had hoped it would, making me think it's time to move on. Wingstop and Comfort Systems differ greatly from each other but share some of the characteristics I'm looking for in future investments. 10 stocks we like better than Block › In 2020, I had a special year as an investor. My retirement account with my employer previously had money invested in target funds -- investment vehicles with a retirement date in mind. I didn't have a choice. But after leaving that job in late 2019, I rolled my account into an individual retirement account (IRA), giving me total control over the cash value of the account. I wasted no time in putting the cash to use, diversifying my portfolio into individual stocks that I believed in for the long haul, including some stocks I still own such as Floor & Decor and Five Below. Also among my 2020 investments were financial technology (fintech) company Block (NYSE: XYZ) and image-browsing platform Pinterest (NYSE: PINS). But after holding this pair for five years, I've finally, and reluctantly, decided to sell both. A sell decision is never easy and every investor will have unique things to consider. But allow me to explain why I sold Block stock and Pinterest stock. And allow me to also explain how I've changed when it comes to knowing what I'm looking for. When I first purchased shares of this company in early 2020, it had a different name and a different ticker symbol. Changing its name from Square to Block in 2021 and changing its ticker symbol from "SQ" to "XYZ" earlier this year aren't necessarily problems. But it reflects the reality that this is a vastly different business today than the one I invested in back in 2020. When I purchased Block stock, I had a clear understanding of the investment thesis -- why I believed it would go up in value. The company had a strong merchant business but it also had a fast-growing consumer business with its Cash App. Having fintech for both merchants and consumers seemed like a powerful combination and something that I believed would stimulate growth and profits long term. This is still true for Block. However, the company now has business segments for buy now, pay later with Afterpay, music with Tidal, and cryptocurrency with Bitkey. I'm now uneasy about the company's vision. And with Bitkey specifically, I can't see how it moves the needle with the business. But it does take away resources and it divides managerial attention. When buying stocks, it's important to look for growth and Block has delivered for me in that regard. That said, it's acquired other companies and used stock-based compensation, which has diluted shareholders. So while its 300% revenue growth over the last five years looks impressive, the revenue growth per share is much lower. This partly helps explain why this investment underperformed the S&P 500 during my holding period in spite of its robust growth. To recap, I sold Block stock because I no longer believe in the company's long-term vision and I'm not a fan of how my shares have been diluted. Pinterest is a different story. Yes, there has been some dilution due to stock-based compensation. But in this case, I'm disappointed with its growth relative to its potential. When I bought Pinterest stock, I called it an exponential growth opportunity. The user base was relatively small and under-monetized. By growing the user base and increasing its monetization, I believed this stock would shock investors. But I'm the one who's been shocked by how hard it's been to live up to its potential. At the end of 2019, Pinterest had 335 million monthly active users and it generated revenue of $1.22 per user in the fourth quarter of that year. Fast-forward to the end of 2024, and Pinterest had 553 million monthly active users and generated revenue of $2.12. Pinterest, therefore, has grown. Its user base was up 65% over five years and its monetization was up 73%, meaning its revenue has roughly tripled. However, I expected more with its monetization efforts. And what concerns me from here is its tendency to be slowed down by headwinds. In the first quarter of 2025, Pinterest's pricing for advertisements plunged 22% year over year. The company's revenue still grew because it increased ad impressions by a whopping 49%. To me, growing revenue this way risks over-saturating the platform with ads, which could be counter-productive in the long term. But the more troubling issue is that some advertising businesses have improved pricing in spite of economic headwinds whereas Pinterest has often come up short. Don't get me wrong, either Pinterest or Block could still be a great long-term investment. But after holding for five years, I have concerns about the next five years and decided it was time for me to move on. In short, after analyzing my underwhelming investments in Block and Pinterest, I have a greater appreciation for growth companies that can push past headwinds, deliver consistent and sustainable profits, and don't dilute shareholders. Two companies that are doing this better than most are Wingstop (NASDAQ: WING) and Comfort Systems USA (NYSE: FIX). For starters, both of these companies have above-average growth but each one has also bought back stock to reduce its share count over the last five years, as seen below. For Wingstop, it's on a stunning 21-consecutive-year streak of growing its same-store sales -- that's some consistency in spite of the ups and downs in the economy during that time. It has nearly 2,700 locations but intends to more than double this long term, presenting an ongoing growth opportunity. And as a mostly franchised business, it's consistently profitable and is generous in rewarding shareholders. These factors are a huge reason why Wingstop stock is up 164% over the last five years. For Comfort Systems stock, it's up a far more impressive 1,300% over the last five years thanks to some important growth trends. The company's air conditioning and electrical services are benefiting from a surge in spending for data centers to support artificial intelligence. It's a case in which a legacy, profitable business suddenly enjoys a boost from new technology. And its growing backlog of nearly $7 billion points to strong financial results in upcoming years. In closing, Wingstop and Comfort Systems have demonstrated dependability through economic cycles, have large runways for growth, and have strong profits that are used to reward shareholders. That's what I'm looking for more than ever and both of these stocks are on my list of stocks that I could buy in the near future. These things have always been on my investing radar to an extent. But my underperforming investments in Block and Pinterest have renewed my focus on the things that create long-term shareholder value. From this perspective, these two investments weren't a total loss. Hopefully they've prepared me to be a better investor today compared to the investor I was yesterday. Before you buy stock in Block, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Block wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Jon Quast has positions in Five Below and Floor & Decor. The Motley Fool has positions in and recommends Block, Comfort Systems Usa, and Pinterest. The Motley Fool recommends Five Below and Wingstop. The Motley Fool has a disclosure policy. After 5 Years of Holding, Here's Why I Reluctantly Just Sold These 2 Stocks (and What I'm Looking for Now) was originally published by The Motley Fool
Yahoo
02-05-2025
- Business
- Yahoo
Block Announces First Quarter 2025 Results
DISTRIBUTED-WORK-MODEL/OAKLAND, Calif., May 01, 2025--(BUSINESS WIRE)--Block, Inc. (NYSE: XYZ) has posted its results for the first quarter of 2025 on the Financials section of its Investor Relations website at Block will host a conference call and earnings webcast at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time today to discuss these financial results. To register to participate in the conference call, please visit the Events & Presentations section of Block's Investor Relations website at About Block Block, Inc. (NYSE: XYZ) 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. View source version on Contacts Media Contact press@ Investor Relations Contact ir@ Sign in to access your portfolio
Business Wire
01-05-2025
- Business
- Business Wire
Block Announces First Quarter 2025 Results
DISTRIBUTED-WORK-MODEL/OAKLAND, Calif.--(BUSINESS WIRE)--Block, Inc. (NYSE: XYZ) has posted its results for the first quarter of 2025 on the Financials section of its Investor Relations website at Block will host a conference call and earnings webcast at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time today to discuss these financial results. To register to participate in the conference call, please visit the Events & Presentations section of Block's Investor Relations website at About Block Block, Inc. (NYSE: XYZ) 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.
Yahoo
31-03-2025
- Business
- Yahoo
Can Block Stock Double by 2030? History Says Its Secret Weapon Will Reward Investors.
In the five-year period leading up to its all-time high in August 2021, shares of Block (NYSE: XYZ) were up an astonishing 2,430%. They were certainly a favorite among the investment community. However, it's been a much more pessimistic story since then. As of this writing, the fintech stock trades 80% below its record. This is despite it being a much larger business today. At the price-to-sales ratio of 1.5, which is significantly cheaper than its historical average, Block might have the attention of investors looking at things to turn around. Can shares double by 2030? Perhaps the company's secret weapon will provide a boost. In July 2021, Jack Dorsey, co-founder and CEO, publicly stated his belief in Bitcoin (CRYPTO: BTC) eventually becoming the native currency of the internet. His company first purchased the world's top cryptocurrency for its own balance sheet in October 2020. Dorsey's view led to a shift in Block's strategic priorities. Via its Cash App segment, the business had already been facilitating the buying and selling of Bitcoin for consumers since as early as 2018. But recently, the company is pushing more aggressively into the space. Block's first-quarter 2024 shareholder letter provided some key details about the business wanting to make Bitcoin accessible, more secure, and usable every day. It was also stated then that Block would allocate 10% of its monthly gross profit to buy Bitcoin. Today, Block has a Bitkey Bitcoin hardware wallet available for sale for $150. It's also working on Proto, an open Bitcoin mining system that sells chips. In 2024, Bitcoin generated just 3% of the company's entire gross profit, so it remains a tiny contributor. But as of this writing, it held $740 million worth of Bitcoin, making it one of the largest corporate owners out there. It's early innings now, but Bitcoin-related activities are poised to represent a larger chunk of Block's financial performance over time. Moreover, the company's Bitcoin holdings could be worth a lot more in the future if the digital asset's performance going forward is even remotely as positive as it was historically. In the last five years, it has surged 1,300%. That kind of trajectory could support increased interest from Block's customers to adopt the crypto, leading to more revenue-generating potential. Additionally, it could push the market to view Dorsey's vision more favorably, leading to a higher valuation multiple for the stock. Bitcoin's decentralized setup is what its ideologic supporters say might be its best characteristic. Anyone in the world with an internet connection can access the network. This perspective aligns with Block's overarching mission of "increasing access to the economy" and to "build a financial system that is open to everyone." With all the attention on Bitcoin, it's easy to forget that Block has two successful segments that are registering fantastic growth. Square, which focuses on merchants with a suite of software, hardware, and financial services, increased gross profit 12% in Q4. Cash App targets individual customers with different personal finance tools. Its gross profit jumped 16%. Management's emphasis on controlling costs has boosted the bottom line. Block's operating income totaled $892 million in 2024. That was a drastic improvement from $279 million loss in 2023. And in 2025, the projection is for adjusted operating income to be $2.1 billion. With a total addressable market of $205 billion (gross profit for both segments), there is potential for long-term expansion. As mentioned, shares trade at a historically cheap valuation. Given that the company continues to register profitable growth, it's hard not to be interested. There is a good setup to see a double between now and 2030. But for those who decide to buy the stock, it's probably table stakes to also be bullish on Bitcoin. For those who are more critical, though, I can understand why leaning so heavily on a cryptocurrency adds an element of uncertainty as to what the business will look like five or 10 years down the road. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $284,402!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $41,312!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $503,617!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 24, 2025 Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Block. The Motley Fool has a disclosure policy. Can Block Stock Double by 2030? History Says Its Secret Weapon Will Reward Investors. was originally published by The Motley Fool Sign in to access your portfolio
