Block (SQ -3.07%), formerly known as Square, has dropped over 60% from its all-time highs. Today's video focuses on Block's upcoming earnings, scheduled for Thursday, Feb. 24 after the market closes, what investors should keep their eyes on during the report, and recent news impacting the company. Here are some highlights from the video. 

  1. The earnings are expected to cover the months of October to the end of December, which is the prime holiday season. The holiday season bodes well for a company like Block, which focuses on both the seller and the buyer ecosystem. 
  2. Gross profit will be one of the metrics I will keep a close eye on this quarter. The previous quarter Block saw strong year-over-year gross profit growth, but unfortunately there was no sequential growth. With this quarter taking place during the holiday season, many investors might expect yearly and quarterly growth. Block's stock price can experience substantial volatility swings if it does not meet investors' expectations.
  3. On Jan. 31, Block acquired Afterpay, the buy now, pay later (BNPL) service. Block has already begun to integrate both platforms, and sellers in the U.S. and Australia can use the BNPL functionalities on their e-commerce stores. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the market prices of Feb. 22, 2022. The video was published on Feb. 22, 2022.