SQ - Block: 3 Reasons To Buy This Fintech On The Drop
2024-06-09 09:41:04 ET
Summary
- Block is a highly attractive growth play for Fintech investors, with a surge in EBITDA and significant earnings momentum.
- Cash App remains the fastest-growing business segment for Block and sees continual momentum with its Cash App Card. More money keeps flowing to the Cash App ecosystem as well.
- Block has three catalysts for an upside revaluation, including continual product adoption/usage growth with the Cash App Card and improving EBITDA margins.
- Shares trade at 15X P/E which is a bargain.
Block ( SQ ) remains a highly attractive growth play for Fintech investors in FY 2024 as it is seeing continual gross profit momentum in both core business segments, is benefiting from strong Cash App Card adoption and the most recent downtrend in valuation makes shares attractive from a valuation point of view as well. Block's shares have continued to sell off after the Fintech's solid Q1'24 earnings, and I believe the drop represents a new engagement opportunity for long-term investors with a desire to increase their exposure to the fast-growing industry!...
Block: 3 Reasons To Buy This Fintech On The Drop