Block's Reversal Is Already Here - FY2025 Guidance Implies Growth Acceleration

2025-01-10 14:00:00 ET

Summary

• Block's reversal may already be here, thanks to the sequential growth observed in its performance metrics, raised FY2024 guidance, and promising FY2025 commentary.
• This is on top of the growing cross-selling across its fintech and subscription offerings, with it triggering the company's improved monetization trend and higher ARPUs/ gross margins.
• These reasons are also why the consensus forward estimates remain promising, with it underscoring why the SQ stock has outperformed as it has.
• Even so, despite Bitcoin's recent rally, it is apparent that SQ's stock price performance has yet to mirror that of MSTR, with it implying the former's mixed investment thesis as a Bitcoin proxy stock.
• While SQ remains extremely cheap, we advise interested investors to monitor the stock price movement, with it uncertain if the December 2024 bottom of $84s may hold as its new floor.

SQ 's Reversal Is Already Here - FY2025 Guidance Implies Growth Acceleration

We previously covered Block (NYSE: SQ ) in September 2024, discussing how its slowing GPV growth and volatile Bitcoin investment might have contributed to the stock's underperformance compared to its fintech peers, despite the bottom-line beat FQ2'24 earnings call and raised FY2024 guidance....

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