Block's (NYSE: SQ) stock plunged nearly 80% over the past 12 months as the fintech giant disappointed investors with its dismal growth rates. Rising interest rates exacerbated the pain by crushing higher-growth tech stocks.
Some investors might be tempted to buy Block after that steep decline, since it now trades at less than two times this year's sales. However, investors should evaluate these three red flags before pulling the trigger.
Image source: Block.
Source Fool.com