Block's Stock Surge, Explained

Should you buy or avoid this stock?

Early Bird Prime for December 8, 2024

Block (NYSE: SQ) is a fintech stock that has surged this year. It went through a 36.04% rise in 2024 and a 53.11% sprint since September.

The good times have been rolling for Block, with analysts praising it. Bernstein, in particular, has recently dubbed Block its "new best idea" for 2025. And when analysts start throwing around phrases like "multiple catalysts poised to drive significant growth," you know they're serious. They've even bumped up Block's price target from $90 to $120.

But before you start investing in the stock, remember that what goes up must come down. Yes, even stocks.

The fintech industry is becoming crowded. With so many players vying for market share, Block's growth and profitability could be limited. And let's not forget the ever-present specter of regulatory scrutiny. As a financial services company, Block is under the watchful eye of regulators who could change the rules of the game.

Adding a sprinkle of salt to the wound, Block's recent financial results missed some estimates.

Should you invest in Block now, or should you avoid the stock? Well, here’s the answer:

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