Why Investors Should Treat the Q2 Report as an Opportunity to Buy Block Stock
Block (NYSE: SQ) shares plunged a day after the release of its second-quarter 2023 numbers on August 3. Although this fintech company, which owns the Square ecosystem and Cash App, posted strong growth numbers and raised its outlook, some indications pointed to slowing growth in third quarter.
Nonetheless, upon a closer examination of all the numbers, the positives appear to outweigh the negatives. With a lower stock price adding an extra incentive, this should give investors all the more reason to add shares of the Square parent.
To properly assess the latest results, we need to adjust for the fact that Block buys the Bitcoin cryptocurrency for users to trade. This forces the company to treat Bitcoin sales volumes as revenue. For that reason, the gross profit, which subtracts Bitcoin costs, better reflects the true state of Block's revenue.
Source Fool.com
Square Inc. Stock
Square Inc. is currently one of the favorites of our community with 6 Buy predictions and no Sell predictions.
With a target price of 85 € there is a positive potential of 49.94% for Square Inc. compared to the current price of 56.69 €.
