Block Stock: Major Revaluation Likely To Continue

Nov. 29, 2022 8:00 AM ETBlock, Inc. (SQ)7 Comments
Geoff Considine profile picture
Geoff Considine
5.7K Followers

Summary

  • Block reported Q3 earnings that substantially beat expectations.
  • The company's ecosystem of financial services has added buy now, pay later (BNPL) capability.
  • SQ shares are down more than 70% over the past 12 months.
  • The Wall Street consensus continues to be too optimistic about SQ's prospects.
  • The market-implied outlook (calculated from options prices) has been bearish for more than a year and continues to be so.

Modern credit methods including Square, Visa, Master Card, American Express and Discover II

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Block (NYSE:SQ) offers an array of financial services to individuals and businesses. For individuals, the company’s Cash App provides peer-to-peer payments and a number of banking services, as well as brokerage through subsidiary Cash App Investing, LLC

SQ stock price history

Seeking Alpha

Block stock earnings history

ETrade

Block stock - continuing disconnect between analysts and traders

Seeking Alpha

SQ Stock consensus outlook

ETrade

SQ stock Wall Street analysts rating

Seeking Alpha

SQ stock market-implied outlook

Geoff Considine

Block stock market-implied outlook

Geoff Considine

Block stock returns

Geoff Considine

Block stock profitability

Geoff Considine

This article was written by

Geoff Considine profile picture
5.7K Followers
Geoff has worked in quantitative finance for more than twenty years. Before entering finance, Geoff was a research scientist for NASA. Geoff holds a PhD in Atmospheric Science from the University of Colorado - Boulder and a BS in Physics from Georgia Tech. Neither Geoff Considine nor Quantext (Geoff's company) are investment advisors. Nothing in any commentary here on Seeking Alpha or elsewhere shall be regarded as advice.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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