In addition to growth tech stocks, one of the hardest-hit sectors in the recent market rout has been fintech businesses. And probably the most popular among them, Block (NYSE: SQ), has been particularly beaten down, as shares of this digital payments innovator have fallen more than 60% this year.
Now is a great time to consider what, if any, portfolio changes need to be made. Let's examine the investment merits of Block, which I believe make the stock a compelling buy right now.
At a high level, Block operates two primary segments. The first one is the seller ecosystem, known as Square, which offers small- and medium-sized businesses a range of different software, hardware, and financial services products to do things like accept payments, set up customer loyalty programs, and manage inventory. This segment produced a gross profit of $661 million in the first quarter of 2022, up 41% year over year.
Source Fool.com