Block Inc.’s SQ fourth-quarter performance and earnings beat have CNBC’s Jim Cramer in a dilemma over what to do with the stock. Jack Dorsey-led fintech company, Block, reported a revenue surprise during the fourth quarter, leading to a more than 15% increase in the company’s stock price. However, Cramer believes the stock is still undervalued and has pegged the price target to $100.
Block reported $5.77 billion in revenue in the fourth quarter, surpassing Street expectations of $5.7 billion. Revenue for the full year came in at $21.92 billion, representing a 25% year-on-year increase. Post-earnings, most analysts have expressed a bullish sentiment towards Block’s stock, with some increasing the price target to up to $100.
JPMorgan analyst Tien-tsin Huang highlighted the strong prospects for Block post its Q4 performance, particularly emphasizing the impressive momentum of the Cash App. He believes that Cash App could be the next-gen social bank app and anticipates major upside potential from its expansion.
During a post-earnings conference call with analysts, Dorsey mentioned that Block is focusing on leveraging artificial intelligence (AI) to become more efficient and ship products faster. This strategic focus on AI comes after Block announced significant layoffs impacting over a thousand employees, in a bid to streamline operations and improve efficiency.
Overall, Block’s fourth-quarter performance and earnings beat have generated positive sentiment among analysts and investors, with many seeing potential for further growth and value appreciation in the company’s stock. As the fintech industry continues to evolve and innovate, Block remains a key player to watch.
