2024-01-30 02:54:24 ET
Summary
- Block is a company that helps sellers to run and grow their business, as well as helps individuals to manage their money.
- Their market will be growing significantly over the next decade, and Block has an opportunity to steal market share with their “ecosystems of ecosystems”.
- The main risks are that Block still needs to prove they can operate with a comfortable level of profitability, as well as any unforeseen regulatory laws that affect their business.
- I’ve calculated the fair value of Block’s share price to be approximately $101.15 and believe this company is currently undervalued.
Introduction
Block ( SQ ). "A large solid piece of hard material, especially rock, stone, or wood, typically with flat surfaces on each side." Or at least that's the definition according to Oxford Languages via the first result from Google. The Block we're interested in on the other hand is a company that most will recognize as the owners of the largely successful Cash App - although their original business goal was to make credit card readers utilized by phones. But that's not all that they are - and not what they're trying to achieve. In 2022, Block announced they're trying to build the "ecosystems of ecosystems" by combining their ecosystems currently being utilized by both buyers and sellers, to offer a unique experience that is seamless for everyone involved. In fact, they're so dedicated to this mission that they changed their original name (Square) in 2021 due to the fact they didn't want to just be known for the selling side of their business....
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Block: Buy The Opportunity