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Perspectives on Block Inc (SQ2)

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Question asked 11/05/2024

Perspectives on Block Inc (SQ2)

Team, Looking for your perspectives on Block. In your Feb-24 opinion you indicated you were bullish on SQ2 after Q4 23 results. Since then they released there Q1 24 results which appeared the business is gaining momentum even with an FY24 upgrade to earnings...in Jack Dorsey's words "the business is starting to hum". However, stock bounced circa 9% on the results and then the next trading session (today 6/5/24) has given up all those gains on no news. Any background? At $105 is this a reasonable price to start accumulating for a medium-long term hold?

Answer

Hi Scott,

We agree with Jack Dorsey, the fortunes of SQ2 certainly do appear to have turned the corner. Last week’s earnings report was very impressive.

Block reported first-quarter earnings after the bell that beat analysts’ estimates.
The company reported $5.96 billion in revenue, vs. $5.82 billion expected.
Block, formerly known as Square, ended the year with 57 million monthly transacting actives for Cash App in March, up 6% year over year.

We like the risk/reward towards SQ2 around the $110 area.

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Block Inc (SQ2)

LAST UPDATED 10/05/2024 13:19

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