Block Stock Plummets 6% After Missing Q4 Earnings Estimates

Block, the financial technology and cryptocurrency company, saw its stock price fall by 6% following the release of its fourth-quarter 2024 financial results. The company missed Wall Street's forecasts across the board, with earnings per share (EPS) of $0.71, significantly below the expected $0.88. Revenue in the quarter totaled $6.03 billion, missing estimates of $6.29 billion, although sales rose 4.5% from a year earlier.

Block, previously known as Square, faces increasing competition in its point-of-sale systems used by smaller businesses from companies such as Toast and Fiserv. Despite this, the company's management team reported that its gross payment volume came in at $61.95 billion during Q4 2024, beating estimates of $61.30 billion.

In addition to its payments business, Block has expanded into cryptocurrencies, currently owning more than 8,000 Bitcoin valued at about $785 million. The company has also pursued a growth strategy, acquiring Australian buy now, pay later (BNPL) firm Afterpay for $29 billion in 2021. Block continues to integrate Afterpay's services into its Cash App and Square ecosystems.

Prior to the after-hours decline, XYZ stock had gained 29% over the past 12 months but remained flat (up 0.48%) over the last five years. Before the latest financial results, the stock of Block had a consensus Strong Buy rating among 22 Wall Street analysts, with an average price target of $107.40, implying 29.34% upside from current levels. These ratings may change following the company's recent performance.