SQ - Why Block Shares Dropped 14% in April
2024-05-08 18:00:40 ET
Shares of Block (NYSE: SQ) fell 13.7% last month, according to data from S&P Global Market Intelligence . A combination of a downgraded analyst rating and challenging market conditions pushed the fintech stock lower, but it reversed some of those losses in early May.
Block's rating was downgraded by a prominent bank on Wall Street in early April. Those analysts cited skepticism about the growth prospects for its consumer finance business, CashApp. CashApp accounted for 60% of the company's gross profit last quarter, so weakness in that segment would have meaningful ramifications for its overall growth rate and cash-flow generation.
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Why Block Shares Dropped 14% in April