The first half of 2022 was unkind to fast-growing but richly valued stocks like Block (NYSE: SQ). Shares are down 76% from their all-time high almost a year ago. Chalk it up to the U.S. Federal Reserve's interest rate hikes (higher rates lower the present value of stocks) and possible economic recession.
In spite of macroeconomic issues, though, Block remains in high-growth mode and is only just beginning to unlock the profitability of its fintech platform. This stock could be a fantastic buy right now for investors who don't mind riding out some volatility in the share price.
Early in 2022, Block completed the acquisition of buy now, pay later (BNPL) outfit Afterpay in an all-stock purchase. The deal was worth $29 billion when it was announced last summer, but it ended up being worth significantly less given Block stock's decline.
Source Fool.com