Why Block Stock Was Rocked Today
These days, it's sometimes hard to remember that fintech Block (NYSE: SQ) was once a high-flying investor darling. On Wednesday, the beaten-down company's shares suffered a fresh body blow, declining by over 7% following their inclusion on a naughty list compiled by a researcher.
Before market open, Evercore ISI analyst David Togut not only reiterated his underperform (i.e., sell) recommendation and $49 per share price target on Block stock, he added it to his company's "tactical underperform" list. He enumerated no less than seven reasons for investors to rid themselves of the shares.
Chiefly among these, Togut is concerned with "persistent headwinds" from competition in the retail financial services space, declining economic growth, and a more cautious lending regime at the fintech company's buy now, pay later unit Afterpay.
Source Fool.com
