Block’s shares plummeted 18% on Friday, their worst day since 2020, after the company missed fourth-quarter earnings expectations and issued guidance that failed to reassure investors. The sell-off followed a financial report showing revenue of $6.03 billion, below analyst estimates.
Competition is intensifying in the point-of-sale market, with Square gaining ground on Block’s Cash App business. Morgan Stanley analysts note that Toast, Fiserv’s Clover, and Shift4 are eroding Block’s share. However, CEO Jack Dorsey emphasizes long-term growth potential through integration of financial services products.
Block reported 71 cents per share in earnings, beating the low end of estimates but missing the high end. Revenue was also lower than expected at $6.03 billion. The company’s gross profit increased 14% year over year to $2.31 billion, slightly below consensus estimates.
The stock has fallen 20% this year, contrasting with the Nasdaq’s 1.1% gain. Analysts point to Cash App’s slower user growth as a concern. Block reiterates its full-year 2025 outlook of at least 15% gross profit growth.
Source: https://www.cnbc.com/2025/02/21/block-shares-head-for-worst-day-in-5-years-after-earnings-miss.html