Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 21 Jul, 25 | XYZ | Buy | USD 72.82 | USD 77.0 | USD 82.0 | 2 days | Closed |
10.34%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Strong Cash App Engagement: Gross profit per monthly transacting active rose 9% YoY to USD 81
Record Adjusted Operating Income: USD 466 million in Q1 2025, marking a 28% YoY increase
Bitcoin Investment Loss: A USD 93 million remeasurement loss impacted net income in Q1 2025
Reduced Gross Profit Growth Rate: Q1 2025 gross profit grew at 9% YoY, down from 22% in the prior year’s Q1
Block's reliance on non-GAAP metrics, exposure to cryptocurrency volatility, and uncertain macroeconomic conditions pose material risks to its earnings visibility and operating margin sustainability
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 72.82 | 65.0 | 77.0 | 82.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Financial Performance and Profitability: Block Inc. reported a solid financial performance in Q1 2025, achieving a 9% year-over-year (YoY) growth in gross profit. This was primarily driven by ongoing product innovation across Square and Cash App. The company’s highest-ever quarterly Adjusted Operating Income stood at USD 466 million, reflecting a 28% YoY increase. This notable growth highlights the company’s ability to balance expansion initiatives while maintaining profitability. Block continues to use the Rule of 40 framework as a financial benchmark, underscoring its disciplined approach to sustainable growth.
Segment Growth Across Square and Cash App: Both Cash App and Square delivered resilient performance metrics. Cash App reported a gross profit growth of 10% YoY, supported by increased adoption of services such as Cash App Card, Borrow, and Buy Now Pay Later (BNPL). The gross profit per monthly transacting active increased 9% YoY, reaching USD 81 on an annualized basis. Similarly, Square exhibited a 9% YoY increase in gross profit, aided by strength in banking products and software-integrated payments. Square’s constant currency Gross Payment Volume (GPV) rose 8.2%, reflecting strong market share gains across targeted verticals.
Customer Engagement and Monetization: Block’s strategic focus on deepening engagement yielded promising results. Cash App inflows per transacting active rose 8% YoY, indicating increased reliance by users for paycheck deposits and broader financial activity. Monthly actives for Cash App’s Card reached 25 million, while Borrow and Pay services also demonstrated strong user bases with 5 million and 7 million actives, respectively. Additionally, over 95% of Afterpay installments were paid on time, and 98% of purchases incurred no late fees, highlighting improved customer repayment behavior and responsible usage of lending features.
Strategic Priorities and Product Expansion: The company continued executing on strategic initiatives centered around infrastructure, local seller experience, and AI-powered tools. Cash App’s “Bank Our Base” strategy targeted U.S. households earning up to USD 150,000 annually, aiming to become their primary financial service provider. Square focused on increasing seller retention and acquisition through flexible platforms and localized support. The progress in mid-market seller penetration, which now accounts for 41% of Square’s GPV, illustrates effective execution in higher-volume segments.
Future Outlook and Guidance: Despite a dynamic macroeconomic backdrop, Block provided forward-looking guidance with cautious optimism. For full-year 2025, the company anticipates gross profit of USD 9.96 billion, representing 12% YoY growth, and an Adjusted Operating Income of USD 1.90 billion, yielding a 19% margin. Q2 2025 guidance indicates a gross profit of USD 2.45 billion, with YoY growth of 9.5% and USD 450 million in Adjusted Operating Income. The company also aims to accelerate growth in the second half of the year, particularly through expanded Borrow services and retroactive BNPL offerings.
Financial Discipline and Shareholder Value Creation: Block remains committed to maximizing shareholder returns through a disciplined capital return strategy. The company continues to prioritize gross profit retention and margin optimization, while strategic reinvestments in product development and user acquisition lay the groundwork for sustainable long-term growth. By reinforcing financial discipline and operational efficiency, Block positions itself to deliver enhanced value to stakeholders in the years ahead.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Block, Inc (NYSE: XYZ) at the closing market price of USD 72.82, as on July 18, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industry:
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) |
|---|---|---|---|---|---|---|
| XYZ Block, Inc |
0.27 0.35% | 78.45 | - | - | - | - |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Jul 18,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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