Investment Opportunities in Fintech Industry: Exploring If Block Stock is a Buy
Is Block Stock a Buy?
This article explores the investment potential of Block (NYSE: SQ) in the fintech industry, highlighting opportunities for investors seeking growth.
Two Distinct Businesses
Block operates Cash App for individuals and Square for merchants, showcasing its diverse financial services and tools.
- Cash App has 56M monthly active users and saw 33% gross profit growth in 2023.
- Square handles $53.5B of gross dollar volume, focusing on merchant services.
High Growth Potential
With a $190B gross profit addressable market, Block aims for continued expansion by entering new markets and adding features.
- The company forecasts an adjusted operating margin of 13%, signaling growth opportunities.
Beaten-down Valuation
Despite a 70% drop in the past three years, Block's strong fundamentals and efficient operations suggest a bright future.
Investors should consider the compelling price-to-sales multiple of 2.2 before adding Block stock to their portfolios.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.