Why Block Stock Moved 22% Higher in December
Shares of fintech company Block (NYSE: SQ) soared 22% in December according to data provided by S&P Global Market Intelligence. There wasn't specific news sparking the jump in price, but many stocks benefited from an overall market rally in reaction to the Federal Reserve's announcement that it would cut interest rates this year.
Block, formerly Square, is a fintech company that operates what it calls two "ecosystems." Its original seller's business, which it still calls Square, markets small-business solutions, including hardware and software that automates many processes. Its Cash App is a digital personal finance app that offers everything from bank accounts to Bitcoin trading.
Both of these businesses are popular and growing, but the Cash App business is larger and growing faster. Management sees an opportunity in combining them, where it says there is a white space in creating more digital financial tools for small businesses.
Source Fool.com
