Is Block Stock a Buy Now?

• Ongoing economic uncertainty is effecting Block’s financials, with growth slowing for Square and Cash App.

• Bitcoin remains a key strategic focus for the leadership team, as Block works on boosting the utility and adoption of the leading cryptocurrency.

• Competition and economic conditions pose risks, but the stock’s valuation is compelling.

• 10 stocks we like better than Block ›

If you’ve been a longtime investor in Block (NYSE: XYZ), it’s been an extremely volatile journey. Shares of the innovative financial services company soared over 2,000% from their initial public offering in November 2015 to their peak in August 2021. However, slower growth and subdued market sentiment have pushed shares lower since, as they trade 80% below that record high (as of May 21).

Despite the choppy performance, Block deserves a closer look from investors. Should you buy this fintech stock right now?

The investment community wasn’t pleased with Block’s financial performance for the first quarter (ended March 31). Shares immediately tanked 20% following the announcement.

For starters, Block is posting slower growth. Gross profit increased by just 9% for Square, its merchant-facing segment. For Cash App, gross profit was up by only 10%. Both of these gains showed a deceleration from previous quarters. It also doesn’t boost confidence knowing that Cash App ended the quarter with 57 million active users, a figure that has stayed the same for at least the past five straight quarters.

Gross payment volume in Q1 totaled $56.8 billion, lower than analyst expectations. What’s more, management provided guidance that came in below Wall Street estimates. Block expects gross profit to come in at just under $10 billion for the full year.

Square serves small businesses, while Cash App aims to be the top financial app for U.S. households making up to $150,000 in annual income. Specifically focusing on these types of customers, as opposed to those who are larger or make more money, exposes Block more to changing macro conditions.

The leadership team has a positive view, though. “We remain confident in our ability to accelerate Block’s gross profit growth in the second half of 2025 and beyond,” the Q1 2025 shareholder letter reads. Optimism surrounds a new Cash App Borrow product. Marketing spending will also increase 50% sequentially in the second quarter.

For what it’s worth, Block’s profitability has been improving noticeably. Adjusted operating income is projected to be $1.9 billion in 2025, up from $1.6 billion last year and $351 million in 2023. The business is finally showing an intense focus on operational efficiencies, which investors should appreciate.