Block Inc (XYZ) Stock Forecast & Price Target

Block has demonstrated positive financial momentum, with seller revenue (excluding Bitcoin) surpassing expectations, driven by strong gross payment volume (GPV) trends and robust subscription and service revenue growth due to customer additions and product innovations. The company's balance sheet reflects a healthy liquidity position of $10.7 billion, with substantial cash reserves allowing for continued investment in high-return initiatives and a significant buyback program. Furthermore, anticipated economic improvements in early-FY25, combined with strategic ramp-ups in marketing and product offerings, are expected to enhance margins and accelerate gross profit growth throughout the fiscal year.

Block's gross profit expectations for 1Q indicate a shortfall, projected at $2.32 billion, which falls below consensus estimates and reflects only a roughly 11% year-over-year growth. The performance of Cash App has also shown weakness, with monthly active users remaining flat year-over-year and engagement metrics underperforming expectations. Expectations for fiscal year 2025 gross profit have been revised downward to at least $10.22 billion, further intensifying concerns over the company's ability to meet growth targets amidst increasing macroeconomic uncertainties and competitive pressures.