Aug. 6 at 8:27 PM
$XYZ Block's Q2 results strengthened the long-term investment case despite the post-earnings selloff. Gross profit grew 25%, Cash App continued to improve monetization, Square accelerated to 13% gross profit growth, margins expanded, and management raised full-year guidance.
The market's reaction seems driven more by high expectations than weaker fundamentals. Block is steadily evolving from a payments company into a broader financial ecosystem centered on Cash App and Square.
The biggest opportunity is turning Cash App users into primary banking customers while connecting consumers and merchants on one platform. The main risk is growing reliance on lending, which increases exposure to credit and regulatory risks.
At around
$80 per share, the valuation looks reasonable if Block can sustain profitable growth. My conviction has increased modestly, but the next few quarters will be key to confirming this momentum.
GLTA
