Insights

Block share price tumbles 6% as quarterly earnings sink

The company’s outlook is likely dragging on its share price today.
The post Block share price tumbles 6% as quarterly earnings sink appeared first on The Motley Fool Australia. –

The Block Inc (ASX: SQ2) share price opened in the red this morning before continuing its downwards slide.

Its fall come on the back of the S&P/ASX 200 Index (ASX: XJO) tech giant’s earnings for the three months ended 30 June, as The Motley Fool Australia explored earlier today.

The Block share price opened 5.9% lower at $118.63 before plummeting to its intraday low of $116.42 – representing a 7.7% slump.

It has since recovered slightly to trade at $118.33, at the time of writing, That’s 6.15% lower than it was at the end of Thursday’s session.

Let’s take a brief look at today’s release from the payment services provider and owner of former ASX market darling Afterpay.

Block share price slumps on quarterly earnings

As my Fool colleague James reported earlier this morning, Block’s earnings for the June quarter were mostly in line with the market’s expectations.

It posted US$4.4 billion of revenue – a 6% drop from the prior corresponding period.

Its adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) also slumped 29% to US$1.47 billion, leading the company to post a net loss of US$208 million.

However, the real weight on the Block share price is likely the company’s outlook.

It expects Square’s GPV [gross payments volume] to be up 18% year on year in July – down from 25% in the June quarter. Meanwhile, it failed to elaborate on the expected growth rate of its Cash App business.

It also flagged US$75 million of expected additional operating expenses for the current quarter.

Today’s fall included, the Block share price is 33% lower than it was when it hit the ASX in January.    

The post Block share price tumbles 6% as quarterly earnings sink appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Block share price in danger of sinking following Q2 update
5 things to watch on the ASX 200 on Friday
Here are the top 10 ASX 200 shares today
Why is the Block share price charging 10% higher on Thursday?
Why are ASX 200 tech shares having such a stellar run today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info