SQ - Block: I Don't Get The Optimism
2024-04-01 06:35:57 ET
Summary
- Block's market cap of $52 billion is difficult to justify given its current free cash flow of $515 million.
- SQ's ecosystem and banking ambitions may face challenges in competing with established banks and providing adequate customer service.
- Share-based compensation and convertible debt could lead to further dilution of shareholder ownership and reduce long-term returns.
Shares of Block, Inc. ( SQ ) have had an interesting run over the last few years.
SQ 5Y Price History (Seeking Alpha)
Enjoying a huge wave of optimism in the bull market of 2021, those feelings quickly disappeared as the challenges of 2022 entered the fray. Reaching into the $40s last fall, the stock has about doubled since then on a new wave of optimism....
Block: I Don't Get The Optimism