Why Block's Stock Was Knocked Down Today
Investors took a bit of a ride with Block (NYSE: SQ) on Friday as the stock bounced up and down throughout the trading day. It was down 7.6% to $82.88 shortly after the opening bell, then surged to $93.19 at around 10:30 a.m. ET, up 3.9%. But it sank again as the day wore on, finishing down 2.3% at $87.66.
The catalyst was the fintech's second-quarter report, which was released Thursday after market close. It was something of a mixed bag -- hence the volatility of the stock Friday.
The mixed bag for Block stemmed from the fact that it beat earnings and revenue estimates, but underperformed on two key metrics. It booked a net loss of $0.36 per share, in sharp contrast to its net income of $0.40 per share in the second quarter of 2021. On an adjusted basis, which analysts track, Block had earnings of $0.18 per share, down from $0.49 per share in the prior-year period, but ahead of analysts' consensus estimate of $0.16 per share. Also, revenue came in at $4.4 billion, down 6% year over year, but ahead of the $4.3 billion consensus estimate.
Source Fool.com
