![]() Claiming the coveted #1 position in the Finance category on the U.S. Cash App Dominates App Storeīlock’s growth prospects remain impressive, with much of its success credited to the remarkable performance of its star player - Cash App. Though the prior year’s bitcoin-related activity made for a tough comparison, Block still managed to achieve robust 14% revenue growth, clocking in at a staggering $4.65 billion in Q4. Nevertheless, Block’s fundamental businesses are still thriving, thanks to its creative solutions. However, with the trading volumes for cryptos (including Bitcoin) now in a state of notable decline, the company finds itself without the external revenue boost it once enjoyed. In the second half of 2021, Block was riding high on a wave of growth and soaring stock prices, thanks in no small part to the frenzy surrounding cryptocurrencies – particularly Bitcoin. Block Does Not Need Bitcoin to Drive Growth Given these factors, I am bullish on the stock. Additionally, there are crystal-clear signs of improving margins and profitability prospects. ![]() On the other hand, we can’t ignore that Block’s ecosystem is evolving rapidly, with CashApp, in particular, delivering impressive metrics. On the one hand, there is no doubt that several challenges are currently impacting the company’s performance, such as a decline in bitcoin ( BTC-USD) related revenues and a slowdown in economic growth that is negatively affecting Block’s merchants. This leads me to believe that the market may not be accurately pricing Block’s prospects, indicating strong upside potential for shares, moving forward. It is, in fact, still drifting at the same levels it did in August 2018, even though the company has demonstrated some remarkable progress in recent times. Yet, the stock has been underperforming over the past year. Block’s ( NYSE:SQ) growth story remains quite impressive.
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