Should You Buy, Sell, or Hold Block Stock After Its Post-Earnings Pop?

Block’s (XYZ) stock surge following its Q2 earnings presents a mixed picture for investors. In the June quarter, the fintech company reported revenue of $6.05 billion vs. estimates of $6.31 billion, while earnings fell short at $0.62 per share versus estimates of $0.69 per share. However, strong operational metrics told a different story.

Block’s gross profit jumped 14% to $2.54 billion, exceeding analyst estimates of $2.46 billion. More importantly, Block raised full-year gross profit guidance to $10.17 billion, representing 14% growth and above its previous forecast of $9.96 billion. Square’s payment volume grew 10% to $64.25 billion, demonstrating continued market share gains despite intensifying competition from Toast (TOST) and Fiserv’s (FI) Clover.