Block’s Q2 earnings show revenue below estimates at $6.05 billion and earnings at $0.62 per share, yet gross profit increased 14% to $2.54 billion. Square’s payment volume grew 10% to $64.25 billion. Net income doubled to $538.5 million, with Q3 gross profit growth forecasted at 16%.

Cash App’s banking strategy attracts 8 million active users, generating over $250 in gross profit per user annually. The lending portfolio expands responsibly, reaching 6 million monthly users and $18 billion in annualized originations. Square’s go-to-market investments yield strong returns, with field sales teams showing rapid growth.

Block’s focus on emerging payment methods like Bitcoin and stablecoins enhances transaction opportunities. Analysts forecast sales to rise from $24.1 billion in 2024 to $39.55 billion in 2029, with free cash flow improving from $1.55 billion to $5 billion. XYZ stock could gain over 120% in the next four years if priced reasonably.

With 42 analysts covering XYZ stock, recommendations include 26 “Strong Buy,” four “Moderate Buy,” seven “Hold,” and five “Strong Sell.” The average price target is $80.61, slightly above the current price. Despite revenue headwinds and competitive pressures, improving metrics provide cautious optimism for Block stock’s future growth.

Read more at Yahoo Finance: Should You Buy, Sell, or Hold Block Stock After Its Post-Earnings Pop?