Block, Inc. (XYZ), based in Oakland, California, is a major player in the fintech industry specializing in financial services and digital payment solutions. Established in 2009, it offers products such as Square, which provide businesses with point-of-sale technology to accept payments, monitor sales, and manage inventory. The company has a market capitalization of $37.13 billion, which classifies it as a “large-cap” stock.
The stock had reached a 52-week low of $44.27 back in May, but is up 38% from that level. Block’s shares have come under pressure due to its financial results missing estimates. The stock is down 18.5% over the past three months, while the broader Technology Select Sector SPDR Fund (XLK) has gained 11.5% over the same period. Therefore, Block has underperformed its sector over the past three months.
This underperformance persists over a longer period. Over the past 52 weeks, Block’s stock has dropped 36.3%, while it is down 3.9% over the past six months. On the other hand, the Technology Select Sector ETF is up 22.2% and 24.2% over the same periods, respectively. Block’s shares have been trading below their 50-day moving average since late October and below their 200-day moving average since early November.
On Nov. 6, Block reported its third-quarter results for 2025. In that, the company reported a 2.3% year-over-year (YOY) increase in its revenue to $6.11 billion, missing the $6.34 billion that Wall Street analysts had expected. Its adjusted EPS increased 1.9% YOY to $0.54, missing the $0.63 consensus estimate. The stock dropped 7.7% intraday on Nov. 7, as a result of this.
On the other hand, the company has seen significant traction during the Black Friday and Cyber Monday period. Block reportedly handled more than 124 million transactions across Square, Cash App, and Afterpay over the four days, an increase of 10% from the previous year.
We compare Block’s performance with that of another payments stock, Corpay, Inc. (CPAY), which has declined 15.5% over the past 52 weeks and 6.2% over the past six months. Therefore, Block has been the clear underperformer over the past 52 weeks.
Wall Street analysts are moderately bullish on Block’s stock. The stock has a consensus rating of “Moderate Buy” from the 42 analysts covering it. The mean price target of $83.03 indicates a 35.9% upside compared to current levels. The Street-high price target of $105 indicates a 71.8% upside.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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