Block Inc’s (formerly known as Square) revenues are now past their peak during the pandemic and have climbed steadily since Q1 2022. However, their net income has remained practically flat during that time. The company seems to be growing, but I don’t have any insight as to why they aren’t profitable yet.
As for the intangibles, Dorsey as an owner can be characterized as innovative or mercurial, depending on your point of view. He infamously had Block buy Jay-Z’s failed streaming service Tidal for $300 million back in 2021, and has a particular affinity for NFTs/Crypto/the Blockchain. On the flip side, the company itself offers robust and highly popular merchant services through Square as well as Cash App (which is the most used payment service in the world if I remember right).
All that said, the stock is down to $58 from its ATH in early and again in late 2021 at around $275. Does this stock intrigue you as a buy-low opportunity with potential, or are you staying far away? If you’re bag holding (I am with a small position), what’s your strategy? Personally I like the business, but I think Dorsey’s a bit of a charlatan, so any investment is a gamble on him either staying out of the way or taking a back seat to someone else. So what are your thoughts?
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