In this video, I'll talk about the state of Block (SQ 1.68%), formerly known as Square, and why there's some downward pressure. You can find the video below but here are some highlights. 

  • Down 45% since its all-time highs, Block is now valued at $67 billion. CEO Jack Dorsey has left Twitter so he can focus on Block and Bitcoin. I think that by now we all know where his priorities lie. 
  • Last month Wedbush downgraded the stock from $250 to $190 and has put a neutral rating on it. The main reasons are reduced consumer spending, inflation, and brick-and-mortar stores being forced to close due to COVID-19. But if it turns out that people spend as much as before even with higher prices, that could bode well for the Square side of the business. 
  • According to Tipranks, the average analyst price target is around $280, representing a 96% upside.
  • The Afterpay acquisition is yet to be finalized. Shareholders overwhelmingly approved the deal, and it now only requires approval from the Spanish central bank, which is expected in mid-January. 

For the full insights, watch the video below and consider subscribing. 

*Stock prices used were the closing prices of Jan. 6, 2022. The video was published on Jan. 7, 2022.