Block (NYSE: SQ) was a market darling for many years. The financial technology (fintech) upstart benefited greatly during the COVID-19 pandemic as consumers and businesses switched from physical to digital payments. Investors loved the stock so much that -- even when the company announced a risky $29 billion acquisition for buy now, pay later (BNPL) provider Afterpay -- the stock shot up 10% to all-time highs. Shares of acquirers almost always fall they announce a huge acquisition, because they can dilute existing shareholder, burden the buyer with debt, and the deals don't often work out as planned.

That acquisition was in the summer of 2021. Today, the bull market mania has deflated, and so has Block's share price. With no signs of profitability, uncertain cryptocurrency and lending initiatives, and a damning investment report exposing some potential holes in the business, investors have gotten increasingly bearish on Block. The shares are down about 85% from all-time highs to about $44, which is where the stock traded during the March 2020 lows. The last two years have been brutal for any investor in this fintech disruptor.

Is there any hope left for Block shareholders? Or should investors cut their losses and try their luck elsewhere? Let's take a closer look and find out.

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Source Fool.com