In this video, I’ll talk about the state of Block (NYSE:SQ), formerly known as Square, and why there’s some downward pressure. You can find the video below but here are some highlights.
- Down 45% since its all-time highs, Block is now valued at $67 billion. CEO Jack Dorsey has left Twitter so he can focus on Block and Bitcoin. I think that by now we all know where his priorities lie.
- Last month Wedbush downgraded the stock from $250 to $190 and has put a neutral rating on it. The main reasons are reduced consumer spending, inflation, and brick-and-mortar stores being forced to close due to COVID-19. But if it turns out that people spend as much as before even with higher prices, that could bode well for the Square side of the business.
- According to Tipranks, the average analyst price target is around $280, representing a 96% upside.
- The Afterpay acquisition is yet to be finalized. Shareholders overwhelmingly approved the deal, and it now only requires approval from the Spanish central bank, which is expected in mid-January.
For the full insights, watch the video below and consider subscribing.
*Stock prices used were the closing prices of Jan. 6, 2021. The video was published on Jan. 7, 2022.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
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