Block also noted at its recent quarterly investor call that this particular group of sellers contributed "more than 10 times the gross profit compared to those only using one product." This implies that an increasing number of sellers are finding greater value in Block's Square ecosystem.Īlthough Block's shares have done well recently on the back of decent Q4 2021 metrics, the company's stock price has still declined by -37% year-to-date in 2022. These numbers suggest that Cash App is competing well with other players such as Paypal's ( PYPL) Venmo.Īnother key metric to note is the proportion of Square's (formerly known as the Seller business segment) sellers utilizing multiple (four or more) products which increased from 10% in 2016 to 38% last year as indicated in its Q4 2021 shareholder letter. Notably, Block also disclosed at the company's Q4 2021 results briefing that its Cash App was the top "downloaded finance app in the U.S." and "the number four downloaded app overall" in the country last year. Separately, SQ's monthly active users for Cash App grew by an impressive +22% YoY from 36 million at the end of 2020 to 44 million as of end-Q4 2021. More importantly, Block's +45% increase in its GPV for Q4 2021 was higher than the Wall Street consensus GPV growth estimate of +44% (as per S&P Capital IQ) for the most recent quarter. Excluding the exceptional Q2 2021 where SQ's GPV jumped by +88%, the company's Q4 2021 GPV growth was also superior to its +12% and +29% increase in its GPV for Q4 2020 and Q1 2021. Apart from beating expectations on the key financial metric (earnings per share), Block's operating metrics in the most recent quarter were also excellent.īlock's Gross Payment Volume or GPV grew +45% YoY to $46.3 billion in Q4 2021 as per its fourth-quarter shareholder letter, and this was on par with the company's GPV growth of +43% YoY in Q3 2021. It is clear that Block has performed well on its key metrics for Q4 2021, which resulted in its shares doing well in the recent two weeks or so.īlock's Share Price Performance In The Past One MonthĪs per the company's Q4 2021 financial results announcement, Block's Q4 2021 non-GAAP adjusted earnings per share of $0.27 came in much higher than the sell-side's consensus bottom line forecast of $0.22 per share. Block's last traded stock price of $111.92 is still +18% above its share price prior to the release of its recent quarterly results. SQ's shares rose by +26% from $94.99 as of Februto $119.82 as of Februafter the company reported its financial performance for the fourth quarter of 2021. SQ Stock Key Metricsīefore I write about my analysis of SQ as a long-term investment candidate, I touch on Block's recent stock price performance. Considering these different factors that impact its long-term outlook, I maintain my Hold rating for SQ. On the other hand, Apple's new Tap To Pay service or feature serves as an example of the potential competitive threats that Block could face in the coming years. On one hand, Block's rebranding highlights the value of its other non-payments businesses that have synergies with its core payments businesses, which could be a key driver of the company's overall long-term growth. In this article, my focus is on SQ's long-term outlook.Īpple's ( AAPL) recent launch of a new payment service in early-2022 and SQ's corporate name change at the end of last year are the key factors that would determine where Block will be in the next decade. I discussed Block's acquisition of Australian BNPL (Buy Now, Pay Later) payments company, AfterPay, in my earlier Januarticle. I still have a Hold rating for Block, Inc.'s ( NYSE: SQ) shares. This means that this stock is suited as a new addition to your portfolio as trading bullish markets is always a lot easier.Jetcityimage/iStock Editorial via Getty Images Elevator Pitch This means that if you invested $100 now, your current investment may be worth 369.555$ on 2024 October 23, Wednesday. These predictions take several variables into account such as volume changes, price changes, market cycles, similar stocks.įuture price of the stock is predicted at 162.53018169705$ ( 269.555% ) after a year according to our prediction system. Our site uses a custom algorithm based on Deep Learning that helps our users to decide if SQ could be a good portfolio addition. stock forecastĪs of 2023 October 23, Monday current price of SQ stock is 43.980$ and our data indicates that the asset price has been in a downtrend for the past 1 year (or since its inception).īlock Inc - Class A stock price has been showing a declining tendency so we believe that similar market segments were not very popular in the given period. 1 year Block Inc - Class A Forecast: 162.53018169705 *ĥ year Block Inc - Class A Forecast: 944.569 * About the Square, Inc.
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