Tech conglomerate Block Inc. (SQ) reported fourth-quarter revenue, gross profit, and earnings that topped Wall Street’s expectations. While the company delivered solid top-to-bottom line growth, fraud allegations against its payment platform, Cash App, dampened investor sentiment surrounding the stock.
Given SQ’s lackluster profitability, elevated valuation, a challenging macro environment, and controversy over the Cash App business, this tech stock is best avoided now. I have discussed several reasons why I am extremely bearish on this stock.
