Insights

Here’s Why Block (Square) Is Rising While Most Other Stocks Are Plunging

What happened
The stock market has been hammered over the past couple of days. After a massive decline on Thursday, all three major market indexes were well in the red at 1:30 p.m. ET on Friday.
However, fintech giant Block (NYSE: SQ), better known by its former name Square, was one of the few bright spots. Sure, its 2% gain as of early afternoon might not seem too impressive, but considering that most of its fintech peers are down by 4%, 5%, or more at the same time, it is.
Image source: Block.

So what
Since we’re in early May, you may have guessed that this move is earnings related. It’s not difficult to see why investors might be pleasantly surprised with Block’s latest results. Gross profit grew by 34% year over year, with strong growth in both the Cash App and Square (seller) ecosystems. Some of this increase came from the recent Afterpay acquisition, but the fintech giant’s organic growth was still 25%, an impressive rate.
Cash App had a very strong quarter in the right ways, with subscription and service-based revenue rising by 43% compared with the same quarter last year. Impressively, Cash App’s gross profit grew at such a rate despite Bitcoin revenue declining 51%.
Now what
One particularly interesting area to watch is the company’s international growth. The vast majority of Block’s income comes from the United States, but that is changing — fast. In the seller ecosystem, gross profit doubled year over year in markets outside of the U.S., and if the company can keep this momentum going, it could be a major growth catalyst in the coming years.
Matthew Frankel, CFP® has positions in Block, Inc. and has the following options: short January 2024 $200 calls on Block, Inc. The Motley Fool has positions in and recommends Bitcoin and Block, Inc. The Motley Fool has a disclosure policy. –

What happened

The stock market has been hammered over the past couple of days. After a massive decline on Thursday, all three major market indexes were well in the red at 1:30 p.m. ET on Friday.

However, fintech giant Block (NYSE: SQ), better known by its former name Square, was one of the few bright spots. Sure, its 2% gain as of early afternoon might not seem too impressive, but considering that most of its fintech peers are down by 4%, 5%, or more at the same time, it is.

Image source: Block.

So what

Since we’re in early May, you may have guessed that this move is earnings related. It’s not difficult to see why investors might be pleasantly surprised with Block’s latest results. Gross profit grew by 34% year over year, with strong growth in both the Cash App and Square (seller) ecosystems. Some of this increase came from the recent Afterpay acquisition, but the fintech giant’s organic growth was still 25%, an impressive rate.

Cash App had a very strong quarter in the right ways, with subscription and service-based revenue rising by 43% compared with the same quarter last year. Impressively, Cash App’s gross profit grew at such a rate despite Bitcoin revenue declining 51%.

Now what

One particularly interesting area to watch is the company’s international growth. The vast majority of Block’s income comes from the United States, but that is changing — fast. In the seller ecosystem, gross profit doubled year over year in markets outside of the U.S., and if the company can keep this momentum going, it could be a major growth catalyst in the coming years.

Matthew Frankel, CFP® has positions in Block, Inc. and has the following options: short January 2024 $200 calls on Block, Inc. The Motley Fool has positions in and recommends Bitcoin and Block, Inc. The Motley Fool has a disclosure policy.

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

Share on facebook
Share on twitter
Share on linkedin

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 indefinitely, 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.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!