Why Shares Of Jack Dorsey’s Block Are Surging 14% Premarket Today
Block SQ stock surged by nearly 14% in premarket trading on Friday following the company’s Q4 2023 earnings report. The report showcased a significant increase in gross profit and robust growth in the Square and Cash App revenue.
What Happened: The company, previously known as Square, reported a fourth-quarter gross profit of $2.03 billion, marking a 22% year-over-year rise. The adjusted EBITDA forecast was also raised to a minimum of $2.63 billion from $2.40 billion.
Block concluded 2023 with 56 million monthly transacting actives for Cash App, most using it for peer-to-peer payments or the Cash App Card. The Cash App business reported a gross profit of $1.18 billion, a 25% year-over-year increase.
Shares were last up 13.64% at $77.23 before the opening bell on Friday, according to data from Benzinga Pro.
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“We believe this strategy will enable us to build the largest network in the long run, with a highly engaged customer base using Cash App as their primary banking solution,” Jack Dorsey, the CEO of Block said in a note to shareholders.
Why It Matters: The surge in Block’s stock follows a series of strategic moves by the company, including major layoffs in January, affecting over a thousand employees across various sectors. The layoffs were aimed at boosting efficiency at the financial firm.
Despite these challenges, Block’s earnings indicate a strong recovery and a promising future. The company’s focus on the Cash App business and its potential as a primary banking solution for customers could be a key factor in its future growth.
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