Why Block Stock Moved 22% Higher in February

Shares of Block (NYSE: SQ), formerly known as Square, jumped 22% in February according to data provided by S&P Global Market Intelligence. Investors were pleased with its progress, reported in its fourth-quarter results, as well as its 2024 guidance.

Block became a symbol of the opportunities available in digital payments when its Cash App came onto the scene several years ago. It was a new field to conquer for the company, which previously had its Square sellers business and was veering into something completely different. It built up these two "ecosystems," and they have both become very popular. Block is known in both cases to focus on design and innovation, meeting customer needs and reducing pain points. These are what set it apart from traditional players and even from newer companies that are entering the ring.

But it might have gone too far from these roots, and performance as well as investor confidence began to sour after management became heavily involved in blockchain and Bitcoin. It has also developed several open-source developer projects and an artist's hub. Revenue continues to increase at a robust pace, but Block has been struggling with profitability.

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Source Fool.com