From CNBC: 2025-05-02 10:22:00

Block shares dropped over 20% following a disappointing quarterly report with concerns around Cash App. Multiple firms downgraded the stock due to stagnant user growth and weak consumer demand. Cash App generated $1.38 billion in profit, missing expectations. Block’s turnaround plan focuses on lending and increasing marketing spend by 50% in Q2.

Meanwhile, rival Venmo is showing momentum, with parent company PayPal reporting a 20% revenue jump driven by increased adoption of Venmo’s services. Venmo is focusing on embedding itself deeper into e-commerce flows to improve monetization per user. Cash App is leaning into lending and banking, while Venmo is chasing spend at checkout in the race to own the consumer’s wallet.



Read more at CNBC:: Block plunges 20% as Cash App miss triggers downgrades