Block Stock Tumbles On 2025 Profit Cut, But Dorsey Eyes Q3 Rebound: Retail Eyes Scooping The Dip

Block Inc. (XYZ) stock fell 18.4% in extended trading on Thursday after the financial technology firm lowered its 2025 profit outlook and its first-quarter earnings fell short of Wall Street’s expectations.

The company reported adjusted net income of $0.56 per share for the three months ended March 31, while analysts expected it to post $0.94 per share, according to FinChat data.

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

Its bitcoin segment revenue fell to $2.30 billion during the first quarter from $2.73 billion a year earlier, tracking a fall in the prices of the cryptocurrency.

Gross profit at its Cash app rose 10% to $1.38 billion, but the growth rate was slower than the year-ago quarter, primarily driven by softer inflows and weaker-than-estimated Cash App Card spending.

However, the company said its gross payment volume grew by 8.2% on a constant currency basis, aided by improved food and beverage sales.

The company lowered its gross profit forecast to 12% from 15% projected earlier, due to economic uncertainty. It forecast second-quarter gross profit of $2.45 billion.

“We believe Cash App gross profit growth and Block gross profit growth overall,
will significantly accelerate starting in the third quarter,” Dorsey said in a statement.

Retail sentiment on Stocktwits was in the ‘extremely bullish’ (83/100) territory, while retail chatter was ‘extremely high.’

One retail trader said that in a few years, the stock should return to above $200 when small businesses start to recover, as it has more exposure to such companies.

While some retail traders expected to buy more shares if the stock dipped even further.

Block stock has fallen 32.1% year to date (YTD).

Also See: Mastercard Stock Draws Retail Buzz After Q1 Beat, CEO Says No Major ‘Upfronting Of Spending’ Yet

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