SQ - Block: Too Many Red Flags On Management I'm Out

2024-04-01 07:26:16 ET

Summary

• Square and Cash App continue to attract more users and to create new avenues for growth, even though consistent profitability is still far.
• However, in my opinion, Jack Dorsey has demonstrated many times poor resolve and focus on what is important. These are red flags that should not be ignored.
• Block has embraced crypto, has terribly overpaid for companies and has closed nonsensical acquisitions that can only be interpreted as personal projects by the CEO.

I have been a shareholder of Block, Inc. ( SQ ), formerly known as Square for many years but I recently decided to sell my position. I want to be clear that there is actually a lot to like here and I believe both Square and Cash App are tremendous businesses, however over the years I ended up disliking the CEO Jack Dorsey. I lost trust in his ability to allocate capital rationally, and to focus on what is important for the benefit of the company. I am baffled by the TIDAL acquisition, disappointed by the price paid for Afterpay, and scared by the Bitcoin obsession. Too many red flags and no system in place to reign in the CEO given that thanks to supervoting shares he has absolute control of the company....

For further details see: