2 Reasons Block Is a Long-Term Buy
In late 2021, Square Chief Executive Officer Jack Dorsey announced radical changes to his company's direction, including changing its name to Block (NYSE: SQ). He also changed the company's identity from a payments company to one that creates tools and services for tailored audiences. Unfortunately, these changes had terrible timing and many investors were dubious about several of the company's strategies; at the same time, the economy took a turn for the worse. Nervous investors ran for cover, sending the stock down 61% year to date.
However, investors should strongly consider buying this fascinating ecosystem of businesses. Here's why.
Block purchased buy now, pay later (BNPL) platform Afterpay in late January 2022. BNPL is an interest-free installment loan for shoppers. Until recently, investors were unaware of why management made this risky acquisition. However, on Block's third-quarter 2022 earnings call, Dorsey revealed some of the company's plans for Afterpay.
Source Fool.com
