Block Got Its Start Selling Payment-Processing Hardware, but That's Now Less Than 1% of the Business. You'll Never Believe What Its Top Revenue Stream Is Now.
When financial technology (fintech) company Block (NYSE: SQ) went public in 2015, back when it was known as Square, it explained its business in its registration documents like this: "We started Square in February 2009 to enable anyone with a mobile device to accept card payments, anywhere, anytime." The company had a Square-shaped credit card reader that plugged right into smartphones and tablets.
Block has more hardware devices today, and many people think of these devices when thinking about the company. However, through the first three quarters of 2023, the company has only generated $125 million in hardware revenue. This means that hardware sales are a measly 0.7% of its $16.1 billion year-to-date revenue.
On the other end of the spectrum, revenue generated from Bitcoin (CRYPTO: BTC) accounted for 43% of Block's year-to-date revenue -- its largest revenue source. But surprisingly, the purpose of this Bitcoin revenue stream isn't dissimilar to its hardware revenue stream, as I'll explain.
Source Fool.com
Square Inc. Stock
Currently there is a rather positive sentiment for Square Inc. with 5 Buy predictions and 0 Sell predictions.
As a result the target price of 87 € shows a positive potential of 24.98% compared to the current price of 69.61 € for Square Inc..
