(Reuters) -Block’s shares fell 22% on Friday, hitting their lowest since November 2023 after the payments firm cut its profit forecast for the year.
At least eight brokerages reduced their price targets on the stock, citing softness at the company’s peer-to-peer Cash App and mounting competitive pressures.
The stock was last trading at $45.71.
Block’s forecast cut comes amid a delicate time for the economy, with uncertainty sparked by President Donald Trump’s tariffs raising fears of a slowdown in consumer spending.
Data released earlier this week also showed the U.S. economy had contracted in the first quarter, potentially weakening sentiment further.
After market close on Thursday, Jack Dorsey-led Block lowered its forecast for 2025 gross profit growth to 12% from 15%, while projecting second-quarter gross profit at $2.45 billion which was below Wall Street estimates of $2.54 billion.
(Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri)
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