SQ - Block: Top Fintech Growth Stock Poised For A Breakout
2024-04-14 08:35:43 ET
Summary
- Block, Inc. stock has outperformed expectations since I upgraded SQ to a Buy.
- Block is well-positioned for significant operating leverage growth as it scales and gains share.
- Block faces intense competitive headwinds. However, it has demonstrated its business model.
- While SQ has recovered well above its 2023 lows, we are far from reaching its peak.
- SQ investors should capitalize on the recent market weakness to add positions.
Block's Bullish Thesis Remains Intact
Block, Inc. ( SQ ) stock has outperformed my expectations since I upgraded SQ to a Buy in early February 2024 before Block's fourth-quarter earnings release. Investors in the Jack Dorsey-led company saw SQ notch a 15% gain against the S&P 500's ( SPX ) ( SPY ) 3% upside over the same period. However, like leading fintech player PayPal ( PYPL ), SQ remains well below its 2021 all-time highs, down nearly 75% from those levels. As a result, investors who chased SQ's pandemic-fueled bubble are likely still nursing significant losses if they still hold to their SQ bag....
Block: Top Fintech Growth Stock Poised For A Breakout