Block trades on the ASX and in the US, but this $61bn business has struggled in recent years, especially after February’s big miss on revenue and downgrade to FY25 earnings. The company has lowered its growth expectation from 15% to 12% due to decreased consumer spending and reduced fund inflows to Cash App cards, particularly in late February and March.
Some headwinds remain for XYZ, including regulatory and legal investigations underway and struggles in the cryptocurrency space. As a consequence, XYZ has laid off over 900 employees to steady the business operationally, but this, by definition, comes with challenges.
- We believe it’s too early to pick XYZ as a turnaround story, but it is a stock that remains on our radar.
MM is neutral towards XYZ around $100
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