Why Block is Suddenly in Trouble

And, Rivian's "challenging demand."

February 21, 2025

Today is Friday, February 21, 2025.

The Early Bird Index today is 83.27

New to this newsletter? Sign up here

Why Block is Suddenly in Trouble

Financial technology provider Block (NYSE: XYZ) posted disappointing financial earnings results on Thursday and fell 6.85% in after-hours trading.

Financials: Block, the parent company of the Square payment system and Cash App, reported earnings of 71 cents per share and revenue of $6.03 billion in the past quarter, both lower than expected.

Outlook: The company expects gross profit to hit $2.32 billion in the current quarter and expects it to grow 15% in 2025. But, investors wanted better projections.

Early Bird’s Nest Egg Gains: Block has several challenges that contributed to its underperformance.

  • Once an early innovator in its field, Block now faces increased competition from new rivals.

  • In addition to increased regulatory scrutiny, there are allegations that Block's Cash App user metrics may have been artificially inflated through fake accounts.

Final Thoughts: Before these results, the stock was already down 7% in the last 30 days.

Fortune Favors The Bold

Ever wish you could turn back time and invest in Amazon's early days? Well, buckle up because the AI revolution is offering a second chance.

In The Motley Fool's latest report, dive into the world of AI-powered innovation. Discover why experts are calling it "the rocket fuel of AI" and predicting a market cap 41 times larger than Amazon's.

Don't let past regrets hold you back. Take charge of your future and capitalize on the AI wave with The Motley Fool's exclusive report.

Whether it's AI or Amazon, fortune favors the bold.

Notables

Notable Earnings Today: Atmus Filtration Technologies (NYSE: ATMU), Brady (NYSE: BRC), Balchem (Nasdaq: BCPC), Telephone & Data Systems (NYSE: TDS), Sunstone Hotel (NYSE: SHO), Uniti Group (Nasdaq: UNIT), TXNM Energy (NYSE: TXNM), Oil States (NYSE: OIS), AdvanSix (NYSE: ASIX), Arbor Realty Trust (NYSE: ABR), Vipshop (NYSE: VIPS).

Notable IPOs Today: Wellgistics Health, Inc. Common Stock (Nasdaq: WGRX), Heidmar Maritime Holdings Corp. Common Stock (Nasdaq: HMR), Fold Holdings, Inc. Class A Common Stock (Nasdaq: FLD).

Notable Equity Crowdfunding Campaigns Ending Today: Wellgistics Health, Inc. Common Stock (Nasdaq: WGRX).

Notable Economic Events Today: S&P Global Services PMI / S&P Global Manufacturing PMI / S&P Global Composite PMI (9:45 a.m. ET), Existing Home Sales (10:00 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).

Rivian's "Challenging Demand"

Despite posting good financial earnings results on Thursday, shares of the electronic vehicle maker Rivian Automotive (Nasdaq: RIVN) only ticked up 0.44% in after-hours trading.

Financials: Rivian reported a loss of 70 cents per share and revenue of $1.73 billion; both were better than expected.

Powering the Story: The problem is that the company only expects to deliver between 46,000 and 51,000 vehicles in 2025, which is lower than the previous year. Rivian blamed its 2025 projections on a “challenging demand environment.”

Final Thoughts: Rivian is down 14% in the last 12 months.

Booking Holdings Boosts Dividend

Online travel giant Booking Holdings (Nasdaq: BKNG) jumped 2.13% in after-hours trading on Thursday after posting good financial earnings results.

Financials: The company reported earnings of $41.55 per share and revenue of $5.5 billion in the last quarter; both were better than expected.

Final Thoughts: Booking also increased its dividend by 10%. The stock is up 7% in the last 30 days.

Meme Stock King Does it Again: Ryan Cohen Boosts Alibaba Stake to $1 Billion (Wall Street Journal)

Constitution Ratification: Why is Cardano’s (ADA) price up today? (Cointelegraph)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Want more investing tips? Listen to the podcast.

Show Your Support: Buy Me a Coffee.

Questions or comments? Hit reply to reach out.

The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.