Block’s shares fell 22% on Friday, wiping off nearly $8 billion from the company’s market value. The decline came after a 2025 profit forecast cut raised concerns about its key businesses, particularly its peer-to-peer Cash App.
Brokerages have reduced their price targets, citing weakness in Cash App and mounting competition. However, analysts point to Block’s Square segment as a bright spot, providing payments solutions to small and medium-sized businesses. Despite this, investors should be cautious due to economic uncertainty and the potential for further deterioration.
Analysts at Jefferies have stated that the “bear case on Cash App has won out in the near-term,” citing an “incredibly conservative” gross profit growth forecast of 9.5% in the second quarter. Square Business Strength is seen as a positive, with brokerage William Blair noting that the segment is making competitive progress. However, caution is advised due to macroeconomic uncertainty and the need for investors to recognize the low margin for error in a tough economic backdrop.
Source: https://finance.yahoo.com/news/block-shares-tumble-2025-profit-141833791.html