Block Inc shows strong market confidence amid low short interest
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 03 2024
0mins
Should l Buy XYZ?
Block Inc's stock has risen by 5.02% as it crosses above the 5-day SMA, reflecting positive market sentiment. The company's short interest stands at just 3.50%, indicating strong market confidence in its stability, which could attract more investor interest and enhance its market performance. This low short interest suggests that investors are optimistic about Block's future, potentially leading to further gains.
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Analyst Views on XYZ
Wall Street analysts forecast XYZ stock price to rise
30 Analyst Rating
25 Buy
3 Hold
2 Sell
Strong Buy
Current: 51.940
Low
55.00
Averages
86.51
High
108.00
Current: 51.940
Low
55.00
Averages
86.51
High
108.00
About XYZ
Block, Inc. builds technology to increase access to the global economy. The Company operates through two segments: Square and Cash App. The Square includes managed payment services, software solutions, hardware, and financial services offered to sellers, excluding those that involve Cash App. The Cash App segment includes the financial tools available to individuals within the mobile Cash App, including peer-to-peer payments, bitcoin and stock investments. The Cash App also includes Cash App Card, which is linked to customer stored balances that customers can use to pay for purchases or withdraw funds from an ATM. Cash App also includes the BNPL platform. Its Afterpay business is transforming the way customers manage their spending over time. Its TIDAL business is a music platform that empowers artists to thrive as entrepreneurs. Its Bitkey business is a simple self-custody wallet built for bitcoin. Proto business is a suite of bitcoin mining products and services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Block, Inc. Reports Strong Q4 2025 Earnings Amid Workforce Reduction
- Workforce Reduction Strategy: Block, Inc. announced a workforce reduction from over 10,000 to just under 6,000, demonstrating a commitment to optimizing operational efficiency and cost structure despite delivering strong financial performance in 2025.
- Financial Performance Boost: In Q4, Block generated $2.87 billion in gross profit, a 24% year-over-year increase, with total gross profit for the year reaching $10.36 billion, reflecting a 17% growth, indicating ongoing improvements in revenue growth and profitability.
- Cash App Growth: Cash App's monthly active users returned to growth in the second half of 2025, reaching 59 million, while primary banking actives grew 22% year-over-year to 9.3 million, showcasing the company's success in user engagement and market penetration.
- Optimistic Outlook: The company expects an 18% increase in gross profit for 2026 to $12.2 billion and has raised its adjusted operating income guidance to $3.2 billion, reflecting strong confidence in future growth, particularly in the application of AI and intelligence tools.
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Block Inc. Reports Decline in Q4 Profit
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- Adjusted Earnings: Excluding special items, Block Inc. reported adjusted earnings of $402 million, or $0.65 per share, aligning with analyst expectations, which reflects the company's efforts in cost management amidst declining profits.
- Revenue Growth: Despite the profit decline, Block Inc.'s revenue increased by 3.6% year-over-year to $6.252 billion from $6.033 billion last year, demonstrating the company's strong sales capabilities in the market.
- Future Outlook: The company anticipates a 54% year-over-year growth in adjusted diluted EPS to $3.66 by 2026, showcasing management's confidence in future performance recovery despite current challenges.
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- Stock Market Reaction: Following the announcement, Block's stock surged by 24%, indicating a positive market response to the company's transformation strategy and increased investor confidence in future growth potential.
- Employee Compensation Package: Affected employees will receive severance equal to 20 weeks of salary plus one week for each year of tenure, along with health insurance and transition funds, aimed at mitigating the negative impact of layoffs and preserving the company's reputation.
- Leadership Decision: CEO Jack Dorsey stated that opting for immediate layoffs rather than gradual cuts was to avoid long-term damage to employee morale and customer trust, demonstrating the company's decisiveness and transparency in facing challenges.
See More
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See More
Block, Inc. Reports Strong Q4 2025 Earnings Amid Workforce Reduction
- Workforce Reduction Strategy: Block, Inc. announced a workforce reduction from over 10,000 to just under 6,000, demonstrating a commitment to optimizing operational efficiency and cost structure despite delivering strong financial performance in 2025.
- Financial Performance Boost: In Q4, Block generated $2.87 billion in gross profit, a 24% year-over-year increase, with total gross profit for the year reaching $10.36 billion, reflecting a 17% growth, indicating ongoing improvements in revenue growth and profitability.
- Cash App Growth: Cash App's monthly active users returned to growth in the second half of 2025, reaching 59 million, while primary banking actives grew 22% year-over-year to 9.3 million, showcasing the company's success in user engagement and market penetration.
- Optimistic Outlook: The company expects an 18% increase in gross profit for 2026 to $12.2 billion and has raised its adjusted operating income guidance to $3.2 billion, reflecting strong confidence in future growth, particularly in the application of AI and intelligence tools.
See More
Cryptocurrency Market Pullback Amid Uncertainty Over Bottoms
- Market Pullback: Bitcoin reversed after Wednesday's relief rally, with trading volume dropping 22% over the past 24 hours, indicating weakened market sentiment that could undermine investor confidence and lead to further sell-offs.
- Ethereum Performance: Ethereum sharply fell in early trading but recovered later, with its Market Value to Realized Value ratio dropping to 0.78, a level historically signaling market bottoms, potentially attracting investor interest.
- Market Liquidation: Over $240 million was liquidated from the market in the last 24 hours according to Coinglass, primarily affecting bullish long traders, reflecting extreme fear sentiment prevailing in the market.
- Market Capitalization Changes: The global cryptocurrency market capitalization reached $2.26 trillion, increasing by 3.02% in the last 24 hours, despite major cryptocurrencies losing market share, highlighting the volatility and uncertainty in the market.
See More
U.S. Stocks Close Mixed; Netflix and Block Shares Rise
- Netflix Stock Rises: Netflix shares increased by 2.31%, closing at $84.61, with an intraday high of $86.50; despite a 52-week range of $134.12 to $75.01, the stock surged nearly 8.5% to $91.76 in after-hours trading, reflecting investor confidence in its future performance.
- Block Shares Surge: Block's stock rose 4.99%, closing at $54.53, with a high of $54.80; while its fourth-quarter earnings of $0.65 per share met expectations, revenue of $6.25 billion slightly missed forecasts, yet the announcement of a workforce reduction of over 40% led to a 23.14% jump in after-hours trading to $67.15.
- CoreWeave Stock Dips: CoreWeave's stock fell by 0.39%, closing at $97.63, despite reaching a high of $100.75 during the day; it dropped to $89.05 in after-hours trading, indicating strong demand for its AI cloud services but losses exceeding expectations.
- Dell Earnings Beat Expectations: Dell's stock decreased by 1.64%, closing at $121.45, but reported fourth-quarter earnings of $3.89 per share, surpassing estimates, with revenue rising to $33.38 billion; the projected adjusted EPS for fiscal 2027 is $12.90, leading to an 11.5% increase in after-hours trading to $135.40.
See More
Block Inc. Reports Decline in Q4 Profit
- Profit Decline: Block Inc. reported a fourth-quarter profit of $116 million, or $0.19 per share, a significant drop from last year's $1.946 billion and $3.05 per share, indicating substantial earnings pressure on the company.
- Adjusted Earnings: Excluding special items, Block Inc. reported adjusted earnings of $402 million, or $0.65 per share, aligning with analyst expectations, which reflects the company's efforts in cost management amidst declining profits.
- Revenue Growth: Despite the profit decline, Block Inc.'s revenue increased by 3.6% year-over-year to $6.252 billion from $6.033 billion last year, demonstrating the company's strong sales capabilities in the market.
- Future Outlook: The company anticipates a 54% year-over-year growth in adjusted diluted EPS to $3.66 by 2026, showcasing management's confidence in future performance recovery despite current challenges.
See More
Block Cuts Workforce by Over 40%, Stock Surges 24%
- Layoff Announcement: Block has announced a workforce reduction of over 40% due to the efficiency gains from intelligent technology, which allows fewer employees to accomplish more, expected to significantly lower operational costs and enhance profit margins.
- Stock Market Reaction: Following the announcement, Block's stock surged by 24%, indicating a positive market response to the company's transformation strategy and increased investor confidence in future growth potential.
- Employee Compensation Package: Affected employees will receive severance equal to 20 weeks of salary plus one week for each year of tenure, along with health insurance and transition funds, aimed at mitigating the negative impact of layoffs and preserving the company's reputation.
- Leadership Decision: CEO Jack Dorsey stated that opting for immediate layoffs rather than gradual cuts was to avoid long-term damage to employee morale and customer trust, demonstrating the company's decisiveness and transparency in facing challenges.
See More
Block's Layoffs Spark 24% Stock Surge
- Block Layoffs Impact: Block announced layoffs of over 4,000 employees, about half of its workforce, leading to a 24% surge in after-hours trading, indicating strong market confidence in its cost-cutting measures.
- Monster Beverage Earnings: Despite reporting adjusted earnings of 51 cents per share, exceeding the expected 48 cents, Monster Beverage's fourth-quarter operating margin of 29% fell short of the 29.8% consensus estimate, resulting in a 3% drop in stock price, reflecting investor concerns over profitability.
- Dell Strong Performance: Dell Technologies reported a fourth-quarter earnings per share of $3.89, surpassing analyst expectations of $3.53, with revenue of $33.38 billion exceeding the $31.73 billion forecast, leading to a 10% increase in stock price, showcasing its competitive strength in the market.
- Autodesk Outperformance: Autodesk's full-year revenue guidance of $8.10 billion to $8.17 billion exceeded the market expectation of $7.97 billion, resulting in a stock price increase of over 6%, indicating strong performance and growth potential in the software market.
See More
