Block’s Stock Sinks To 18-Month Low After Multiple Downgrades On Wall Street Over Slowing Cash App Growth

Block (XYZ) shares tumbled over 21% on Friday morning to hit an 18-month low, driven by multiple price target cuts and downgrades from Wall Street, centered around the company’s Cash App performance.

Block shares fell to $44.27 in midday trading, their lowest level since October 2023.

The Jack Dorsey-led company posted quarterly revenue of $5.77 billion, which missed Wall Street’s estimated $6.18 billion.

Its earnings per share were $0.56 for the three months ended March 31, while analysts expected the company to post $0.94 per share, according to FinChat data.

Wells Fargo downgraded the stock to ‘Equal Weight’ from ‘Overweight’ and slashed its price target to $50 from $95.

In a research note cited by TheFly, the brokerage told investors that the combination of "heavily back-half weighted" guidance, growing credit contributions, and numerous Cash App monetization "red flags make it too difficult to recommend shares at current levels." 

It also pointed out that while Block's guidance assumes macro deterioration, management asserts this effect has not materialized to date, creating a messaging versus reality "mismatch." 

Wells Fargo sees a "rougher road" for Block to meet 2026 consensus estimates and considers the risk-reward profile unappealing, even after today's earnings-driven pullback.

BMO Capital also downgraded Block’s stock, citing similar reasons. It revised its rating to ‘Market Perform’ from ‘Outperform’ and cut its price target to $58 from $80. 

The brokerage believes Block's anticipated gross profit growth acceleration may still be risky, and it’s worried that the recent slowdown at Cash App may indicate a lower baseline growth rate in the future.

Morgan Stanley, KeyBanc, Raymond James, Canaccord, and others also lowered their price target on Block’s stock.

The company’s shares have fallen nearly 50% over the past 12 months and are down 33% year-to-date.

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