Key Takeaways
- Block (XYZ) shares advanced 5.39% to reach $63.20 on Wednesday following a 15% drop in crude oil that ignited widespread risk appetite
- Cash App delivered 33% year-over-year gross profit expansion to $1.83 billion last quarter, supported by 59 million monthly active users
- Square’s gross payment volume increased approximately 10%, while international volume surged ~25% on a constant currency basis with record new volume additions
- The company rolled out Square Restaurant Inventory by MarketMan worldwide on April 2, strengthening its seller solutions portfolio
- Analyst consensus stands at Strong Buy with a mean price target of $84.31, representing approximately 34% potential appreciation
Block delivered impressive performance on Wednesday, surging 5.39% to close at $63.20 as crude oil experienced a dramatic 15% decline to approximately $95 per barrel. This drop came amid optimism surrounding a potential two-week ceasefire connected to diplomatic discussions between the U.S. and Iran. The energy market development triggered widespread risk appetite, pushing S&P 500 futures higher by nearly 3% and driving capital back into growth-oriented and fintech stocks.
Block exemplifies this category perfectly. The company operates a dual-platform ecosystem—Square catering to sellers and small enterprises, Cash App serving individual consumers—both positioned to thrive when macroeconomic headwinds subside and consumer activity rebounds.
Notwithstanding Wednesday’s positive momentum, XYZ remains approximately 22% below its level from six months ago, leaving considerable recovery potential.
Cash App Drives Investment Thesis
Cash App represents the company’s most dynamic growth engine currently. During the most recent quarter, Cash App’s gross profit surged 33% year-over-year to reach $1.83 billion, surpassing market forecasts. The platform served 59 million monthly transacting users, while primary banking users reached 9.3 million, reflecting roughly 22% annual growth.
Borrow, Block’s installment lending feature within Cash App, has expanded availability to nearly every U.S. state. Loan originations multiplied more than threefold year-over-year, while repeat customers now qualify for increased borrowing limits with improved risk profiles for Block.
Executives have noted that Cash App has demonstrated resilience during inflationary environments historically—and the platform now offers enhanced financial management capabilities compared to previous economic stress periods.
On the product development front, Block introduced Square Restaurant Inventory by MarketMan on a global scale April 2. This integrated solution provides restaurants with detailed ingredient tracking, recipe controls, and menu profitability analysis directly within Square’s ecosystem—eliminating dependency on external software providers.
Square Demonstrates Positive Trajectory
While Square’s expansion pace trails Cash App’s, the business segment shows encouraging progress. Gross payment volume expanded approximately 10% in the previous quarter, with international markets delivering roughly 25% growth in constant currency terms. Data through late February indicated Square GPV growth accelerating beyond 11%.
New merchant volume acquisition achieved record-setting growth rates. Direct sales teams, strategic partnerships, and independent sales organization channels proved instrumental. Block concluded the fiscal year with 140 dedicated field sales representatives, while collaborations with partners including Sysco and US Foods generated approximately half of prospective merchant inquiries.
Block’s proprietary AI assistant, Goose, delivers estimated time savings of 8–10 hours weekly per engineering team member. Leadership emphasized that recent workforce optimization initiatives focused on accelerating product development velocity rather than solely reducing expenses.
Loop Capital established coverage on March 31 with a Buy recommendation and $75 price objective. Truist Securities upgraded its rating to Buy during March, elevating its target to $77.
Wall Street’s consensus price target stands at $84.31, suggesting approximately 34% appreciation potential from present trading levels. The stock maintains a Strong Buy rating across the analyst community, comprising 27 Buy recommendations, two Hold ratings, and one Sell rating.
Block’s upcoming quarterly earnings release is projected for April 30. The analyst community anticipates earnings per share of 52 cents alongside revenue of $6.23 billion, representing growth from $5.77 billion reported in the comparable year-ago period.
