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- 📈 $SQ: 25% Growth with $7.5B in Profit
📈 $SQ: 25% Growth with $7.5B in Profit
Block's shares soar on groundbreaking advancements! 📈 Profit up 35%, outpacing peers. 💰 Plus, key economic events to watch this week. 📅
Top of the top lads!
Featured Stock of the Week
A note that neither Underwriter nor this newsletter provides investing or trading advice. Please consult with a financial professional before making investment decisions. By reading, you agree to not take this as financial advice and assume all risk.
Block: Block $79.98
Our featured stock of this week is Block Inc (formerly known as Square).
Block's stock has been on a roll, moving up 50% since the start of 2023 and gaining another 8% in March alone. This impressive growth comes on the heels of the company launching exciting new financial products that have caught the eye of investors.
Growing Profitability
Block has been on a roll lately. In just the last quarter, they managed to boost their profits by a staggering 35%. They focused on two key things: keeping their costs down and finding ways to make more money with CashApp and Square for sellers. Block is in a unique position as it can have a closed loop for consumer and business transactions that keep cash within the Block ecosystem. For example, CashApp users can pay sellers using Square. Those same sellers can then distribute payroll to their employees via CashApp who then go onto transact with other businesses using Square thus keeping a lot of cash, activity and transaction data within a closed loop exclusively on Block. Additional Reading |  |
Great Gross Profit Ratio
Block is doing a great job at making money while keeping their costs in check. In fact, for every $100 they earn, they get to keep $65 as profit. Having such a high profit margin gives Block a leg up on their competition. It shows that they're running a tight ship and are in good financial shape. This makes them attractive to investors and partners who want to work with a company that's stable and growing predictably which further compounds their closed loop of CashApp + Square. Additional Reading |  |
Rosier Outlook than Peers
Wall Street analyst grade Block higher than its closest peer -PayPal. Block is continually coming up with new products that keep people interested like the CashApp credit card, integrations with AfterPay, fee overdraft coverage and credit building tools. All of these factors have experts feeling pretty good about where Block is headed. They think Block's stock could go up by as much as 25% in just the next year. That's a big vote of confidence in the company's ability to keep growing and thriving. Additional Reading |  |
Major Market News
Source: Canva
Monday, April 8th - Consumer Price Index (CPI)
What: Measures changes in the prices consumers pay for goods and services.
Impact: The CPI is a key indicator of inflation and purchasing trends. Higher CPI numbers may indicate rising inflation, which may affect consumer spending habits and overall economic stability.
Wednesday, April 10th - Federal Open Market Committee (FOMC) Meeting Minutes
What: Release the minutes from the latest FOMC meeting, including discussions on interest rates and monetary policy.
Impact: FOMC meeting minutes provide insights into the Federal Reserve's stance on economic conditions and potential policy changes. Investors and analysts scrutinize these minutes for clues about future interest rate decisions.
Source: Federal Reserve - FOMC Meetings
Thursday, April 11th - Initial Jobless Claims Report
What: Reports the number of individuals filing for unemployment benefits for the first time.
Impact: Initial jobless claims are crucial to labor market conditions and economic health. Higher-than-expected claims may suggest a weakening job market and impact investor sentiment.
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A note that Underwriter and this newsletter is not investing or trading advice. These are stocks and information we find interesting. Please consult with a financial professional. By reading, you agree to not take this as financial advice and assume all risk. Futures, stocks, bonds trading of any kind involves a lot of risk. No guarantee of profit is made. In fact, you may lose your entire investment. We guarantee no profit whatsoever, You assume the entire cost and risk of any trading or investing activities you choose to undertake. You are solely responsible for making your own investment decisions. Owners/authors of this newsletter, its representatives, its principals, its moderators and its members, are NOT registered as securities broker-dealers or investment advisors either with the U.S. Securities and Exchange Commission, CFTC or with any other securities/regulatory authority. Consult with a registered investment advisor, broker-dealer, and/or financial advisor. Reading and using this newsletter or any of my publications, you are agreeing to these terms. Any screenshots used here are the courtesy of Underwriter. The data, quotes and information used in this blog is from publicly available sources and could be outdated or outright wrong - I do not guarantee accuracy of this information.