Why You Should Avoid Investing in Block Stock in 2023
Block (NYSE: SQ) is one of the worst-performing stocks of 2022. Down 62% this year, the financial technology (fintech) company has disappointed investors after putting up impressive returns in the 2020-2021 bull market. Declining valuations across the technology sector, profitability struggles, and a lack of confidence in the management team all likely contributed to Block's plight. However, despite all this pessimism, the company continues to put up strong top-line growth each quarter.
At first glance, a growing top line and a declining stock price might be music to the ears of long-term investors. But there are many looming concerns about Block right now that make me think investors should avoid buying shares in 2023.
Block -- formerly known as Square -- has put up incredible growth over the past decade with both its business and consumer product lines. For businesses, it was the innovator in offering easy credit card payments for small businesses with its Square card reader, which has driven tons of payment volume flow through its platform. On top of this, it now offers a robust suite of software services to help small businesses succeed, including online payments, loans, and payroll services.
Source Fool.com
