Why Block Stock Is Crashing Today

Shares of Block (NYSE: XYZ) are falling on Friday. The stock dropped 20.7% as of 12:55 p.m. ET and was down as much as 24.3% earlier in the day. The move comes as the S 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 1.5% and 1.8%, respectively.

Block reported its Q1 2025 numbers yesterday, underperforming across the board. Revenue for the quarter was down 3% year over year (YOY), coming in at $5.77 billion when $6.2 billion was expected. While its earnings per share (EPS) were up 19% YOY to $0.56, Wall Street had expected $0.97 per share.

The company lowered its guidance as well. The company expects a Q2 gross profit of $2.45 billion and $9.96 billion for the full year. Analysts were expecting $2.54 billion and $10.2 billion, respectively. The company cited a soft macro environment, weak consumer spending, and lower inflows during what is usually a strong tax refund season for its weaker-than-expected numbers.

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Source Fool.com