SQ2 - Block CDI 1:1

[frugal.rock]

Found this speccy today... ?

Any interest?
I note PayPal went down last night around 20%.
I also note Apple are coming out with their own pay app soon? to cut out third parties...

 

[Garpal Gumnut]

With PayPal dropping I’d be leaving this speccie to slide all on its own.

gg

 

[Dona Ferentes]

enfin.

On February 2nd, 2022, Afterpay Limited (APT) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between APT and its shareholders in connection with the acquisition of all the issued capital in APT by Lanai (AU) 2 Pty Ltd, a wholly owned subsidiary of Block, Inc., formerly known as Square, Inc..

I know a few guys still hanging on out of misplaced loyalty. Though it is hardly the same company.

Block is a fintech company focussed on building the ecosystem of products and services. The products and service offering include the managed payments, POS & related business tools, ecommerce stores, vertical specific software, financial services and platform for developers to meet the sellers need.

Retailers seem to like the PoS connection, but that, again, is only a bit of the picture.

 

[frugal.rock]

With PayPal dropping I’d be leaving this speccie to slide all on its own.

gg

Hmmm, not sure about that after seeing the near 10% gap up tis mornin...
Perhaps the long pocket brigade are gonna run it up to $0.2k before they let it slide?
Behaving like a bucking mule, watch for the carrot.

 

[Dona Ferentes]

Block suffered a $US77 million net loss in the December quarter, its first quarterly loss since June 2020, denting profits for the year as revenues soared to a new high.

The company formerly known as Square grew total revenues to $US17.7 billion for the full calendar year, not far from doubling the $US9.5 billion in revenues achieved in 2020, while higher costs weighed on net profits.

The quarterly hit to profits brought its full year 2021 net profits down to $166.3 million, the lowest level since 2018. The results reflected a 60 per cent jump in operating costs, which touched $4.3 billion for the full year.

The results exclude the performance of Afterpay, which officially became part of the payments company on January 31 this year, following a deal struck in August last year.

Shares in Block traded 23 per cent higher in after hours trading in New York following the results.

...and up 35% on the ASX, which is really only clawing back half of the earlier drop since AfterPay was included. Got as low as $120 before this news, now $155.

Block chief executive Jack Dorsey said he would “integrate buy now, pay later more deeply” into its Square and Cash App services this year, as it delivered a quarterly update that hit expectations, as annual earnings surpassed $US1 billion for the first time.

“We believe Afterpay will accelerate the connections between our Square and Cash App ecosystem,” Dorsey said.

Dorsey said the next focus was Cash App, which is being developed as an alternative to bank apps, which he described as “dry and boring”.

(... and profitable)

 

[frugal.rock]

Clearly Sir @Garpal Gumnut ,
Mr Market is a dirty no good rotten scoundrel swinging swindler... Mrs Market is not impressed with his permiscous irrational manners.
The hide of him... ?

 

[frugal.rock]

I should say, I don't have an interest in this financially, just from a stock point of view.

Perhaps the long pocket brigade are gonna run it up to $0.2k before they let it slide?

Certainly giving it a push...

(I note, Z1P has taken over Sezzle.
I might just pull some cash from safety and have a small go on Z1P...who knows, Square might take it over after their done...?)

 

[Garpal Gumnut]

I should say, I don't have an interest in this financially, just from a stock point of view.

Certainly giving it a push...

View attachment 138369

(I note, Z1P has taken over Sezzle.
I might just pull some cash from safety and have a small go on Z1P...who knows, Square might take it over after their done...?)

Sometimes, us old diggers just have to say.

Ik begrijp deze aandelen gewoon niet.

Ik begrijp deze aandelen gewoon niet.

gg

 

[Country Lad]

Ik begrijp deze aandelen gewoon niet.

gg

Je hoeft ze niet te begrijpen, handel er gewoon in

 

[frugal.rock]

@Country Lad
The format should be double dutch...

 

[Garpal Gumnut]

@Country Lad
The format should be double dutch...

@Country Lad

Sometimes, us old diggers just have to say.

Ik begrijp deze aandelen gewoon niet.

Ik begrijp deze aandelen gewoon niet.

gg

The prize goes to @frugal.rock for guessing my post's meaning.

SQ2, Zip and Block are all double dutch to me.

gg

 

[Dona Ferentes]

collateral damage .... or the hissing sound of hype leaving the market?

SQ2 now sub $100, closed at $99.90 , a 17% drop,

Square provides a range of payments services and in 2018 began offering trading in bitcoin through its cash app.

 

[Belli]

hissing sound of hype leaving the market?

More like a puncture in the tyre. May need a patch or three.

 

[Dona Ferentes]

Buy now, pay later heavyweight Block has the largest analyst coverage of all the companies in this list of stocks thanks to its American domicile. That should give investors confidence that the consensus figures for its share price target are sound.

But the fact there are 43 analysts covering Block with 12-month share price targets ranging from $90 to $299, and a median target of $209.36, has not helped investor sentiment. There is no confidence that this stock will deliver a near 50 per cent return over the next year.

Yep, and now SQ2 is $110, so to 'meet expectations' it's actually got further to go. And probably won't.

(DNH)

 

[Dona Ferentes]

Seems like a bit of a pig in a poke.... digital payments, maybe, but dependent on BNPL and crypto to make it?

Block reported weaker-than-expected gross payment volume, a measure of the total amount of money transacted using Block’s products. Shares slid as much as 7 per cent in late trading.

Block, formerly called Square, reported $US52.5 billion in transactions, missing the $US53.47 billion estimate.

Gross profit for the quarter, the company’s profit before subtracting costs like marketing and product development, was $US1.47 billion, in line with analysts’ estimates. Cash App, the app for sending money between individuals, accounted for roughly 48 per cent of that gross profit. The service now has 47 million active accounts.

Revenue was better than expected, but still declined in the second quarter thanks in large part to a drop in bitcoin-related transactions on Cash App. Revenue collected through bitcoin transactions was $US1.79 billion, down 34 per cent.

The company has warned that bitcoin revenue is a poor measure of its business health given the currency’s wild price fluctuations. Gross profit from bitcoin sales is only about 2 per cent of bitcoin revenue.

Dorsey has made bitcoin a key priority at the company, and Block previously purchased more than $US200 million in bitcoin to keep on its balance sheet. The price of the digital currency has fallen by over 50 per cent since the beginning of the year, leading Block to report a $US36 million bitcoin impairment loss in the second quarter.

Square slipped as much as 7.3 per cent to $US83.17, after closing at $US89.70. The stock has declined 44 per cent so r this year

 

[Dona Ferentes]

I'm seeing their transaction machines everywhere. Just a subset of Square's activity, but as the gorilla in the room, they'll be around for another year. Afterpay; meh.

... now trading just above $90, it's my tip for 2023

 

[Dona Ferentes]

Afterpay-owner Block surged 6.1 per cent to $108 today; shares in Block have gained 17.4% since 01 January after tumbling 61% over a horror 2022 for the BNPL and tech sectors on rising interest rates that prompted investors to dump loss-making businesses.

An analyst said, “[Block over] the last three quarters has a good track record of beating expectations, and quite big beats. The Cash App [product] is the beast in that [Block] business. They don’t split out the Afterpay numbers anymore, I think it’s a bit of sentiment improving for the share price.”

 

[Dona Ferentes]

SQ2 is 15 per cent after short seller Hindenburg issued a report alleging the payments company facilitated fraudsters. CEO Jack Dorsey has vowed to fight the attack.

.... all payments companies facilitate fraudsters. Banks, pokies, the nags. It's just now that the trail is electronic, and fast.

 

[Dona Ferentes]

SQ2 is 15 per cent after short seller Hindenburg issued a report alleging the payments company facilitated fraudsters.

The report alleges Block has been overrun with scam accounts and fake users, meaning it overstates Cash App user numbers to the market, and is circumventing US regulation to overcharge retailers using its Square terminals.

Among the bombshell report’s most disturbing claims, the researchers said Cash App is being used to pay for sex-trafficking and dangerous drugs, with users in the hip hop community boasting about how easy it is to facilitate crime on the platform as Block allows blacklisted users to stay on the app.

The report alleges Block, which is led by Twitter co-founder Jack Dorsey, has turned a blind eye to concerns from employees and regulators about stopping the criminal activity, describing its “Wild West approach to compliance”.

CEO Jack Dorsey has vowed to fight the attack..

Block has denied the allegations

 

[galumay]

ORLY?! What a surprise!! Actually the surprise is that SQ2 is the first to be exposed, others in the sector will be very nervous.