Latest news with #BlockInc
Bloomberg
4 days ago
- Business
- Bloomberg
Jack Dorsey's Block Plans Bitcoin Payments on Square Terminals
Block Inc. is launching a feature to allow businesses that use the company's Square point-of-sale terminals to accept payment in Bitcoin, according to a statement from the company. The Bitcoin payments feature is expected to start rolling out in the second half of 2025 and reach all eligible sellers in 2026, subject to regulatory approvals, according to the statement. When a customer wants to pay with Bitcoin, they will need to scan a QR code at checkout to initiate the payment, which will be facilitated via the Lightning Network.
Yahoo
5 days ago
- Business
- Yahoo
COIN vs. XYZ: Which Crypto-Focused Fintech Stock is a Safe Investment?
Crypto-focused fintechs have gained momentum in the backdrop of easing regulatory control to accelerate crypto adoption (including institutional) as well as integrating artificial intelligence (AI) and blockchain technology. In this context, let's find out which of these two companies is better poised, Coinbase COIN or Block Inc. XYZ. Stablecoins, which bridge the gap between traditional finance and the crypto space, are gaining importance in shaping the digital financial system. In fact, major banks are also exploring their own stablecoin initiatives. Also, major players are pursuing mergers and acquisitions to consolidate their market positions. There were reports about Stablecoin issuer Circle mulling over a sale either to COIN or Ripple. Recently, COIN agreed to buy Derbit to expand its derivatives cyber threats remain a challenge. But as an investment option, which stock is more attractive? Let's closely look at the fundamentals of these stocks. America's largest registered cryptocurrency exchange is well-positioned to capitalize on heightened crypto market volatility and rising asset prices. Coinbase is also poised to benefit from President Trump's pro-crypto outlook and emphasis on regulatory clarity. With 83% of its total revenues coming from the United States — a market increasingly viewed as a future crypto hub — the company is strategically aligned with domestic 2024, Coinbase's total revenues more than doubled, marking its second straight year of positive adjusted EBITDA. Transaction revenues — primarily driven by trading volume — also more than doubled year over year, reflecting both overall market growth and an increase in Coinbase's U.S. market expand crypto's practical use, Coinbase is investing in key infrastructure, including Base — a low-cost Layer 2 scaling solution. These initiatives, along with its focus on stablecoins, underscore the company's efforts to advance real-world utility for digital envisions Coinbase to be the platform for companies that are trying to integrate a financial standpoint, Coinbase remains fundamentally sound. The company ended 2024 with $9.3 billion in USD resources — consisting of cash, cash equivalents, and USDC — up $3.8 billion from the prior year. Its debt burden has decreased in recent quarters, and improvements in both its debt-to-capital ratio and times interest earned suggest a strong ability to manage and service rising costs — including higher transaction and operating expenses — continue to pressure margins. Moreover, the company is vulnerable to fluctuations in crypto asset prices. A significant drop in the value of Bitcoin, Ethereum, or other digital currencies could affect earnings, reduce the carrying value of its crypto holdings, and limit future cash flows. Such developments could impair liquidity and the company's ability to meet ongoing obligations. Block, formerly known as Square, differentiates itself by offering a comprehensive commerce ecosystem enabling sellers to combine software, hardware and payments services from several vendors. Block's entry into the bitcoin market with the CashApp product bodes well. Block continues to hit major milestones – receiving FDIC approval to use Square Financial Services in March this year and the launch of Cash App Afterpay in late February this year. It also expects to invest in high return on equity growth initiatives across Cash App and company continues to leverage its diverse revenue sources—Cash App, Square, and Afterpay—which also position it for global expansion. It remains committed to driving accelerated growth in both Cash App and Square, and with a supportive macroeconomic environment, anticipates steady increases in gross profit each quarter. Block is actively investing in expanding its partner network and scaling its distribution channels. Its ability to integrate Bitcoin into consumer financial services stands out as a strategic these strengths, Block stock faces pressure due to rising competition within the fintech industry. Economic uncertainty stemming from President Donald Trump's tariffs on major trading partners such as China, Canada, and Mexico poses a potential drag on performance in the near term. Meanwhile, rivals like PayPal and Shopify continue to challenge Block's market declining consumer spending in the food, beverage, and discretionary retail segments presents additional headwinds for the company. The Zacks Consensus Estimate for COIN's 2025 revenues implies a 4.5% year-over-year increase but the same for EPS implies a 68.3% decline. EPS estimates have moved southward over the past 30 days. Image Source: Zacks Investment Research On the contrary, the Zacks Consensus Estimate for XYZ's 2025 revenues implies a year-over-year increase of 3.5% while the same for EPS implies a year-over-year decrease of 19.3%. EPS estimates have moved southward over the past 30 days. Image Source: Zacks Investment Research Coinbase is trading at a forward earnings multiple of 48.12, below its median of 59.94 in a year. XYZ's forward earnings multiple sits at 35.1, above its median of 31.86 over the past year. Image Source: Zacks Investment Research Being the largest crypto exchange, COIN's performance is solely dependent on crypto movements. In contrast, Block taps Cash App, Square, and Afterpay for growth, but rising fintech rivalry and weak consumer spending weigh on its stocks. Both companies are expanding shares have gained 6% year to date, while Block shares have lost 31% in the same time. COIN carries a Zacks Rank #3 (Hold), while XYZ currently carries a Zacks Rank #4 (Sell). Thus, at present, COIN seems a safe investment can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Is Block Stock a Buy Now?
Ongoing economic uncertainty is effecting Block's financials, with growth slowing for Square and Cash App. Bitcoin remains a key strategic focus for the leadership team, as Block works on boosting the utility and adoption of the leading cryptocurrency. Competition and economic conditions pose risks, but the stock's valuation is compelling. 10 stocks we like better than Block › If you've been a longtime investor in Block (NYSE: XYZ), it's been an extremely volatile journey. Shares of the innovative financial services company soared over 2,000% from their initial public offering in November 2015 to their peak in August 2021. However, slower growth and subdued market sentiment have pushed shares lower since, as they trade 80% below that record high (as of May 21). Despite the choppy performance, Block deserves a closer look from investors. Should you buy this fintech stock right now? The investment community wasn't pleased with Block's financial performance for the first quarter (ended March 31). Shares immediately tanked 20% following the announcement. For starters, Block is posting slower growth. Gross profit increased by just 9% for Square, its merchant-facing segment. For Cash App, gross profit was up by only 10%. Both of these gains showed a deceleration from previous quarters. It also doesn't boost confidence knowing that Cash App ended the quarter with 57 million active users, a figure that has stayed the same for at least the past five straight quarters. Gross payment volume in Q1 totaled $56.8 billion, lower than analyst expectations. What's more, management provided guidance that came in below Wall Street estimates. Block expects gross profit to come in at just under $10 billion for the full year. Square serves small businesses, while Cash App aims to be the top financial app for U.S. households making up to $150,000 in annual income. Specifically focusing on these types of customers, as opposed to those who are larger or make more money, exposes Block more to changing macro conditions. The leadership team has a positive view, though. "We remain confident in our ability to accelerate Block's gross profit growth in the second half of 2025 and beyond," the Q1 2025 shareholder letter reads. Optimism surrounds a new Cash App Borrow product. Marketing spending will also increase 50% sequentially in the second quarter. For what it's worth, Block's profitability has been improving noticeably. Adjusted operating income is projected to be $1.9 billion in 2025, up from $1.6 billion last year and $351 million in 2023. The business is finally showing an intense focus on operational efficiencies, which investors should appreciate. Investors considering Block must understand how much Jack Dorsey is focused on Bitcoin. The co-founder and CEO of the business believes that working on advancing the leading cryptocurrency's utility is an important use of time. The company has already released a hardware Bitcoin wallet called Bitkey. There is a plan to introduce its first mining chips later this year. Cash App already allows users to buy and sell Bitcoin, and Block owns more than 8,500 units of Bitcoin on its own balance sheet. Knowing that these initiatives are taking place should affect your perspective. If you aren't bullish on Bitcoin, then it's probably not a good idea to buy shares of Block. You need to keep the risks in mind. Competition can't be ignored, both on the individual side with Cash App, and when it comes to merchants with Square. Plus, a possible recession could seriously hurt the performance of Square and Cash App, as it can pressure spending activity. However, the current valuation might be too difficult to ignore. As of this writing, shares trade at a forward price-to-earnings ratio of 19.4. This represents a 12% discount to the broader S&P 500 index. Investors who can appreciate the risk of owning Block, but who also understand the positive attributes this business possesses, should consider starting a position in the stock. It doesn't have to be a big stake. Maybe it makes sense to allocate 1% of your portfolio to Block for now, to get more comfortable with the company and possibly increase that position over time. 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 Neil Patel has 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. Is Block Stock a Buy Now? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
20-05-2025
- Business
- Bloomberg
Block Leans Into Lending After Winning Direct Loans Approval
Jack Dorsey's Block Inc. plans to grow its lending business with the aim of expanding access to credit services after a sequence of disappointing earnings results have shaken investor confidence in the company. In total, Block has extended more than $100 billion in credit globally across its lending products since 2013. Its credit offerings include small business loans through its Square point-of-sale system, consumer loans via its money transfer service Cash App and buy now, pay later loans offered through Afterpay, the service it acquired in 2022.
Yahoo
20-05-2025
- Business
- Yahoo
Block price target raised to $75 from $70 at Wolfe Research
Wolfe Research analyst Darrin Peller raised the firm's price target on Block (XYZ) to $75 from $70 and keeps an Outperform rating on the shares. Block's last two quarterly reports brought incremental doubt from shareholders with them and shares are down 32% year-to-date, the analyst tells investors. However, the firm sees Block's strategy creating value, with recent data-points pointing to Block as a share gainer with potential for multiple expansion and earnings upside, the analyst says. 78% of investors surveyed believe the company should buy back more stock, and 'we agree,' the analyst added. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on XYZ: Disclaimer & DisclosureReport an Issue Mixed options sentiment in Block Inc (XYZ), with shares up $0.84 (+1.47%) near $57.85 Lone Pine buys Capital One, cuts Block in Q1 Appaloosa buys Deutsche Bank, exits FedEx in Q1 Chase Coleman's Tiger Global buys Zillow, boosts PDD in Q1 Mixed options sentiment in Block Inc (XYZ), with shares down $-0.99 (-1.69%) near $57.51
