Why Block Stock Is Falling Today – The Motley Fool

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Motley Fool Issues Rare “All In” Buy Alert
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Shares of Block (SQ 2.28%) were falling this morning after two analysts cut their price targets for the financial services and digital-payment platform company. The tech stock was down by 6.2% as of 10:35 a.m. ET. 
Wells Fargo analyst Jeff Cantwell lowered his price target for Block’s stock to $120, down from $165, and kept his overweight rating on the shares. Cantwell believes the company’s upcoming second-quarter results — which will be reported on Aug. 4 — will be mixed. 
Image source: Getty Images.
Cantwell says that the company could face some headwinds with its Afterpay business — a buy now, pay later company that Block purchased for $29 billion — as well as with its Bitcoin holdings, according to TheFly.com. Additionally, Block’s target price was lowered by Citi analyst Peter Christiansen to $135, down from $185, but he maintained his buy rating on the stock. 
These two price-target cuts come on the heels of Oppenheimer analyst Dominick Gabriele lowering his price target for Block to $112 yesterday, down from $150. He thinks spending could slow in the second half of this year and into 2023. He also thinks the company will be able to manage a potential economic slowdown well. 
Block investors will find out how the company is doing when it reports its latest financial results next week. But it’s no surprise to see the company’s stock drop this morning as investors process comments from these analysts. 
As the broader market continues to experience significant share-price swings as investors try to gauge the economic climate amid rising inflation and Federal Reserve interest-rate hikes, it’s likely that Block’s stock could experience some more short-term turbulence, as well. 

Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Block, Inc. The Motley Fool has a disclosure policy.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Market-beating stocks from our award-winning analyst team.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Making the world smarter, happier, and richer.

Market data powered by Xignite.

source