JPMorgan Predicts Block Inc Will Achieve 'Rule Of 40' By 2026 Despite $70 Million Celebration
Analyst's Perspective: JPMorgan analyst Tien-tsin Huang maintains an Overweight rating on Block Inc. despite mixed third-quarter results, emphasizing that the company is on track to achieve the Rule of 40 by 2026.
Cash App Performance: Cash App showed significant growth with a 24% year-over-year increase in gross profit, driven by higher monetization and a surge in Borrow originations, alongside a rise in monthly active users.
Square's Challenges: Square's growth was slower, with a 9% increase in gross profit, impacted by higher processing costs; however, momentum in field sales and mid-market performance provided some offset.
Future Outlook: Despite a $70 million event affecting profitability, Huang believes Block's ecosystems are accelerating, user metrics are improving, and margins will normalize as temporary challenges subside.
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Technical Analysis for
Technical Sentiment Analysis for () As of , () is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 0 technical signals, shows that 0 indicators are flashing buy, while 0 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
() Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | - | - | - | - | - | - | - |
| Fibonacci | - | - | - | - | - | - | - |
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