Key Highlights
- Block (XYZ) advanced 5.39% to $63.20 on Wednesday following a 15% crude oil decline that fueled a risk-on market rally
- Cash App delivered 33% year-over-year gross profit growth reaching $1.83 billion, supported by 59 million monthly transacting actives
- Square gross payment volume expanded approximately 10%, while international GPV surged roughly 25% in constant currency terms
- The company introduced Square Restaurant Inventory by MarketMan worldwide on April 2, expanding merchant solutions
- Analysts maintain a Strong Buy consensus rating with an average price target of $84.31, representing approximately 34% potential upside
Block experienced a significant rally on Wednesday, advancing 5.39% to reach $63.20 as crude oil prices dropped approximately 15% to around $95 per barrel. The decline came amid optimism surrounding a potential two-week ceasefire linked to U.S.-Iran diplomatic discussions. This development triggered a widespread risk-on sentiment across markets, with S&P 500 futures climbing nearly 3% as investors shifted capital back into growth sectors and fintech stocks.
Block operates within this category perfectly. The company manages a dual-ecosystem model — Square serving merchants and small businesses, while Cash App targets individual consumers — both of which typically gain traction when macroeconomic headwinds subside and consumer spending rebounds.
The stock remains down approximately 22% over the past six months despite Wednesday’s rally, creating potential recovery opportunities.
Cash App Drives Growth Momentum
Cash App represents the company’s most dynamic growth engine currently. During the most recent quarter, Cash App generated gross profit of $1.83 billion, marking a 33% year-over-year increase that surpassed analyst projections. The platform reached 59 million monthly transacting actives, while primary banking actives climbed to 9.3 million, representing approximately 22% year-over-year growth.
Borrow, the company’s short-term lending feature within Cash App, has expanded availability to nearly every U.S. state. Origination volume multiplied more than three times year-over-year, with repeat borrowers gaining access to larger loan amounts while presenting lower risk profiles for Block.
Executive leadership has emphasized that Cash App has demonstrated resilience during inflationary periods historically — and the platform now offers enhanced tools to assist users with cash flow management compared to previous economic stress cycles.
On the product development front, Block unveiled Square Restaurant Inventory by MarketMan on a global scale April 2. This solution provides restaurants with ingredient-level analytics, recipe management capabilities, and menu optimization features directly within the Square ecosystem — eliminating dependency on external systems.
Square Demonstrates Solid Fundamentals
While Square’s expansion pace trails Cash App, the business unit shows positive trajectory. Gross payment volume increased around 10% in the latest quarter, with international GPV climbing roughly 25% when measured in constant currency. Quarter-to-date performance through late February indicated Square GPV growth accelerating beyond 11%.
New volume additions achieved record-level growth rates. Field sales teams, strategic partnerships, and ISO distribution channels served as primary growth drivers. Block concluded the year with 140 field sales representatives deployed, while collaborations with partners including Sysco and US Foods generated approximately half of all inbound merchant inquiries.
The company’s AI platform, Goose, delivers engineering teams an estimated 8–10 hours of time savings weekly. Leadership has clarified that recent workforce adjustments focused on accelerating product development velocity rather than purely cost reduction.
Loop Capital established coverage on March 31 with a Buy recommendation and $75 price objective. Truist Securities elevated its rating to Buy during March, increasing its target to $77.
Consensus analyst price targets average $84.31, indicating approximately 34% potential appreciation from current trading levels. The stock maintains a Strong Buy consensus built on 27 Buy recommendations, two Hold ratings, and one Sell rating.
Block’s upcoming quarterly earnings release is scheduled for approximately April 30. Wall Street expects earnings per share of 52 cents alongside revenue of $6.23 billion, compared with $5.77 billion in the year-ago period.
