Summary Block, Inc. is trading at ~16-17x earnings, well below its 12-month average of ~30x.
Sector: Financials Industry: Transacted & Payment Processing Services Quant Sector Ranking (as of 12/23/2024): 75 out of 686 Quant Industry Ranking (as of 12/23/2024): 8 out of 43 Market Capitalization: $54.11B Quant Rating: Strong Buy "Block, Inc., formerly known as Square, Inc., is a top quant-ranked Transaction & Payment Processing Services stock founded in 2009 by Jack Dorsey and Jim McKelvey. The company has evolved from its initial focus on payments to become a diversified fintech.
Key Takeaways Accelerated product launches, embedded banking, and cryptocurrency integration are driving user growth, deeper engagement, and expansion into higher-margin revenue streams. Innovation in business tools and aggressive international and upmarket expansion boost Block's relevance and market share, supporting long-term revenue and margin growth.
Key Takeaways Rapid AI adoption and fintech integrations are driving sustained product innovation, user engagement, and market share gains, supporting higher earnings growth and structural profitability. Expansion into emerging payments, blockchain, and upmarket/international segments positions Block as a central player in digital finance, improving margins and unlocking significant long-term upside.
Key Takeaways Expanding regulatory pressures, cyber threats, and dependence on cryptocurrency inflows add cost burdens and amplify earnings volatility for Block. Growing competition and emerging government-backed payment systems threaten Block's core payment business, potentially limiting revenue growth and compressing margins.
Block, Inc., together with its subsidiaries, builds ecosystems focused on commerce and financial products and services in the United States and internationally. It operates through two segments: Square and Cash App. The Square segment offers commerce products for restaurants, appointments, retail, point of sale, online, online checkout, and invoices, as well as virtual terminals, risk and order managers, and payment and commerce application programming interfaces; managed payment services; software solutions; hardware products, such as registers, terminals, stands, and readers for contactless and chips; banking services consisting of lending, instant transfer, and checking and savings accounts; and full-service setup and support services. This segment also provides loyalty, marketing, team management, and payroll services; and gift cards. It also offers Square Handheld, a portable point-of sale device for transaction purposes. The Cash App segment offers financial tools, including peer-to-peer payments, bitcoin, and stock investment brokerage; Cash App Card, a debit card; direct deposit, cash boost, and tax preparation services; and Afterpay, a buy now, pay later platform. In addition, the company operates TIDAL, a platform for musicians and fans; TBD, an open developer platform focused on making the decentralized financial world accessible; Bitkey, a self-custody bitcoin wallet; and proto. The company was formerly known as Square, Inc. and changed its name to Block, Inc. in December 2021. Block, Inc. was incorporated in 2009 and is based in Oakland, California.
