Block (XYZ, Financial), the financial technology company founded by Jack Dorsey, is preparing to enter the S&P 500 index, marking a notable milestone for the firm as its integration with traditional finance deepens. This addition signifies a significant moment for companies with considerable involvement in the digital asset sector, highlighting the increasing acceptance of cryptocurrency within the mainstream financial system.
Meanwhile, Bullish, a cryptocurrency exchange funded by Peter Thiel, is moving forward with plans to go public. It has officially filed for an initial public offering on the New York Stock Exchange, with JPMorgan, Jefferies, and Citigroup leading the offering under the ticker "BLSH".
The inclusion of Block (XYZ, Financial) into a key index like the S&P 500 reflects broader institutional confidence in digital currencies and their evolving role in the global economy. This development further emphasizes the growing convergence between traditional financial markets and the burgeoning cryptocurrency industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 40 analysts, the average target price for Block Inc (XYZ, Financial) is $100.64 with a high estimate of $125.00 and a low estimate of $57.00. The average target implies an upside of 28.69% from the current price of $78.20. More detailed estimate data can be found on the Block Inc (XYZ) Forecast page.
Based on the consensus recommendation from 45 brokerage firms, Block Inc's (XYZ, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Block Inc (XYZ, Financial) in one year is $91.10, suggesting a upside of 16.5% from the current price of $78.2. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Block Inc (XYZ) Summary page.
XYZ Key Business Developments
Release Date: May 01, 2025
- Total Block Gross Profit: $2.29 billion, up 9% year-over-year.
- Square Gross Profit Growth: 9% year-over-year, driven by GPV growth of 7.2%.
- Cash App Gross Profit: Up 10% year-over-year.
- Gross Profit Per Monthly Transacting Active: $81 in the quarter.
- Adjusted EBITDA: $813 million, up 15% year-over-year.
- Adjusted Operating Income: $466 million, up 28% year-over-year.
- Adjusted Free Cash Flow: $1.53 billion for the trailing 12 months ending in March.
- Stock Repurchase: Approximately $600 million repurchased through the end of April.
- 2025 Gross Profit Growth Expectation: 12% or $9.96 billion.
- Second Quarter Gross Profit Growth Expectation: 9.5%.
- April Global GPV Growth Expectation: 9.6% year-over-year.
- Adjusted Operating Income Expectation for 2025: $1.9 billion or approximately 19% margin.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Block Inc (XYZ, Financial) reported a total gross profit of $2.29 billion for the first quarter, marking a 9% year-over-year increase.
- Square demonstrated strong performance with a 9% year-over-year gross profit growth, driven by a 7.2% GPV growth.
- The company achieved its highest adjusted operating income and adjusted EBITDA ever, with adjusted EBITDA up 15% year-over-year.
- Block Inc (XYZ) received FDIC approval to use Square Financial Services for issuing consumer loans, which is expected to significantly enhance unit economics and expand the Cash App Borrow offering.
- The company is actively investing in AI and product innovation, with plans to showcase over 100 new products and features, which are expected to drive future growth.
Negative Points
- Cash App's gross profit came in below expectations, attributed to changes in consumer spending behavior, particularly during the tax refund season.
- The company has embedded a more cautious macroeconomic outlook into its guidance, reflecting potential softening in consumer spending.
- Despite strong performance in Square, Cash App's growth was impacted by lower-than-expected inflows and discretionary spending.
- Block Inc (XYZ) lowered its full-year adjusted operating income guidance, reflecting a more conservative approach due to macroeconomic uncertainties.
- The company did not provide specific numbers for Cash App's direct deposit users, indicating potential challenges in expanding this user base.
