Block (SQ) Missed on Earnings, So Why Is the Stock Up?

By Neil Rozenbaum – May 6, 2022 at 10:00AM

NYSE: SQ

Block

Market Cap

$46B

Today's Change

(0.88%) $0.67

Current Price

$75.88

Price as of April 24, 2024, 9:38 a.m. ET

Better-than-expected ecosystem growth and engagement might be the answer.

In this video, I will go over Block's (SQ 0.88%) Q1 earnings report and touch on a couple of points it raised during the call. The company reported a miss on earnings per share and revenue, but the stock is still up.

The company reported total net revenue of $3.96 billion in the first quarter of 2022, down 22% year over year (YOY), missing estimates by $180 million.
Excluding Bitcoin, total net revenue in the first quarter was $2.23 billion, up 44% YOY.
Bitcoin revenue was $1.73 billion, down 51% YOY, and Bitcoin gross profit was only $43 million.
International expansion remains the company's top priority.

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*Stock prices used were the closing prices of May 5, 2022. The video was published on May 6, 2022.

Neil Rozenbaum has positions in Block, Inc. The Motley Fool has positions in and recommends Bitcoin and Block, Inc. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.