Block Inc sees significant options activity amid market downturn
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 06 2024
0mins
Should l Buy XYZ?
Source: Coinmarketcap
Block Inc's stock has declined by 3.01% and hit a 20-day low, reflecting broader market weakness as the Nasdaq-100 is down 1.99% and the S&P 500 is down 1.29%.
Despite the overall market decline, Block Inc recorded an options trading volume of 47,355 contracts, indicating strong investor interest. This volume represents 84.3% of its average daily trading volume, suggesting that traders are positioning themselves for potential price movements. Additionally, the $68 strike call option showed robust demand with 9,121 contracts traded, reflecting some market confidence in the company's future performance.
The significant options activity could indicate that investors are looking for opportunities in Block Inc despite the current market conditions, potentially setting the stage for a rebound if market sentiment shifts.
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Analyst Views on XYZ
Wall Street analysts forecast XYZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XYZ is 86.51 USD with a low forecast of 55.00 USD and a high forecast of 108.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
25 Buy
3 Hold
2 Sell
Strong Buy
Current: 53.380
Low
55.00
Averages
86.51
High
108.00
Current: 53.380
Low
55.00
Averages
86.51
High
108.00
About XYZ
Block, Inc. builds technology to increase access to the global economy. The Company operates through two segments: Square and Cash App. The Square includes managed payment services, software solutions, hardware, and financial services offered to sellers, excluding those that involve Cash App. The Cash App segment includes the financial tools available to individuals within the mobile Cash App, including peer-to-peer payments, bitcoin and stock investments. The Cash App also includes Cash App Card, which is linked to customer stored balances that customers can use to pay for purchases or withdraw funds from an ATM. Cash App also includes the BNPL platform. Its Afterpay business is transforming the way customers manage their spending over time. Its TIDAL business is a music platform that empowers artists to thrive as entrepreneurs. Its Bitkey business is a simple self-custody wallet built for bitcoin. Proto business is a suite of bitcoin mining products and services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Layoff Plans: According to a Bloomberg report, Block is informing hundreds of employees about potential layoffs, with up to 10% of the total workforce, approximately 1,100 employees, likely affected, indicating a strategic shift aimed at improving operational efficiency.
- Shifts in Market Sentiment: Despite retail sentiment on Block shifting from 'neutral' to 'bearish' over the past month, message volumes on Stocktwits surged by 250% in the last week, highlighting increased investor interest in the company's future prospects.
- Analyst Ratings: Cantor Fitzgerald initiated coverage of Block with an 'Overweight' rating and a price target of $87, noting that after the early stages of the turnaround, the company's innovation engine is firing on all cylinders, emphasizing the importance of execution in the upcoming period.
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- Annual Performance Review: During the annual performance review period, the company has informed hundreds of employees that they may be let go, which could lead to decreased employee morale and negatively impact the company culture.
- Earnings Release: Block is set to release its quarterly financial results after market close on February 26, and investors will closely monitor its financial performance to assess the impact of layoffs on the company's future profitability.
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- PayPal Oversold Status: PayPal's RSI is below 11, with shares plummeting over 24% this week, marking its worst weekly performance ever, primarily due to a weak 2026 profit outlook and CEO replacement, indicating market concerns about its future profitability.
- Coinbase Market Performance: Coinbase has an RSI of about 14, with shares down 25% this week linked to a plunge in Bitcoin prices; however, it regained some ground on Friday, and analysts remain optimistic, expecting the stock to double over the next year, reflecting confidence in digital assets.
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- Market Sentiment Volatility: Following significant market swings, many stocks have RSIs below 20, indicating widespread overselling, as investors may be looking for buying opportunities at lower prices, reflecting expectations for a future rebound.
See More
Analyzing the Competitive Outlook of PayPal and Block
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- AI and Stablecoin Integration: By leveraging AI agents and the stablecoin PYUSD (offering a 4% annual yield), PayPal aims to attract more users and increase transaction volumes, potentially aiding in revenue recovery.
- Block's Growth Potential: Block's Cash App reported $1.62 billion in gross profit in Q3 2025, a 24% year-over-year increase, indicating strong growth potential as it transforms into a comprehensive financial platform.
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See More
Block Shares Rise Amid Layoff Reports and Turnaround Momentum
- Stock Price Surge: Block shares rose nearly 3% in after-hours trading on Sunday, indicating a potential second consecutive day of gains if momentum holds during Monday's opening, reflecting positive market sentiment towards the company's restructuring efforts.
- Layoff Plans: According to a Bloomberg report, Block is informing hundreds of employees about potential layoffs, with up to 10% of the total workforce, approximately 1,100 employees, likely affected, indicating a strategic shift aimed at improving operational efficiency.
- Shifts in Market Sentiment: Despite retail sentiment on Block shifting from 'neutral' to 'bearish' over the past month, message volumes on Stocktwits surged by 250% in the last week, highlighting increased investor interest in the company's future prospects.
- Analyst Ratings: Cantor Fitzgerald initiated coverage of Block with an 'Overweight' rating and a price target of $87, noting that after the early stages of the turnaround, the company's innovation engine is firing on all cylinders, emphasizing the importance of execution in the upcoming period.
See More
Analyst Insights on Bitcoin Price Decline Impact
- Declining Bitcoin Correlation: Analyst Paul Golding highlights that as Bitcoin prices slide, many cryptocurrency miners have seen a significant decrease in their stock price correlation with Bitcoin, indicating a shift away from traditional mining towards AI infrastructure.
- Miner Transition Trend: Companies like MARA Holdings are pivoting from crypto mining to AI data centers while retaining some mining infrastructure for revenue, which could impact their future profitability models as they adapt to changing market conditions.
- Liquidity and Asset Management: Some miners, such as IREN, liquidate Bitcoin daily, while others hold Bitcoin assets to support infrastructure development, meaning fluctuations in Bitcoin prices can affect their balance sheet liquidity and investment capabilities.
- Market Sentiment Impact: Although the decline in Bitcoin prices does not necessarily lead to direct stock price drops for miners, market sentiment is closely tied to leverage in the crypto space, infrastructure demand, and model efficiency, all of which can influence investor perceptions of these companies.
See More
Block Inc. Plans Up to 10% Workforce Reduction for Overhaul
- Layoff Plan: Block Inc. is planning to cut up to 10% of its workforce as part of a restructuring effort, which could affect hundreds of employees and reflects the company's pressure to control costs amid a bleak economic backdrop.
- Annual Performance Review: During the annual performance review period, the company has informed hundreds of employees that they may be let go, which could lead to decreased employee morale and negatively impact the company culture.
- Earnings Release: Block is set to release its quarterly financial results after market close on February 26, and investors will closely monitor its financial performance to assess the impact of layoffs on the company's future profitability.
- Market Response: Despite the restructuring challenges, the company has exceeded $200 billion in global lending, indicating a strong foundation in the financial services sector that may support future growth.
See More
Dorsey's Block to Reduce Workforce by 10% in Efficiency Initiative - Bloomberg News
Staff Reductions: Dorsey’s company is cutting up to 10% of its staff as part of a strategy to improve efficiency.
Focus on Efficiency: The decision is aimed at enhancing operational efficiency within the organization.
See More
Market Rebound Signals Emerge as PayPal and Others Become Oversold
- PayPal Oversold Status: PayPal's RSI is below 11, with shares plummeting over 24% this week, marking its worst weekly performance ever, primarily due to a weak 2026 profit outlook and CEO replacement, indicating market concerns about its future profitability.
- Coinbase Market Performance: Coinbase has an RSI of about 14, with shares down 25% this week linked to a plunge in Bitcoin prices; however, it regained some ground on Friday, and analysts remain optimistic, expecting the stock to double over the next year, reflecting confidence in digital assets.
- KKR Oversold Risk: KKR's RSI is below 20, with shares tracking down more than 13% this week amid fears that AI could disrupt the application software industry, yet most analysts maintain a buy rating, projecting a 53% increase in stock price over the coming year, showcasing investor confidence in its long-term potential.
- Market Sentiment Volatility: Following significant market swings, many stocks have RSIs below 20, indicating widespread overselling, as investors may be looking for buying opportunities at lower prices, reflecting expectations for a future rebound.
See More
Analyzing the Competitive Outlook of PayPal and Block
- PayPal's New Initiatives: PayPal plans to launch PayPal World in 2025, allowing users to pay global merchants in local currencies, which is expected to enhance user experience and strengthen market competitiveness.
- AI and Stablecoin Integration: By leveraging AI agents and the stablecoin PYUSD (offering a 4% annual yield), PayPal aims to attract more users and increase transaction volumes, potentially aiding in revenue recovery.
- Block's Growth Potential: Block's Cash App reported $1.62 billion in gross profit in Q3 2025, a 24% year-over-year increase, indicating strong growth potential as it transforms into a comprehensive financial platform.
- Cryptocurrency Strategy: Block launched Square Bitcoin, which automatically converts credit card sales into Bitcoin, and holds approximately 8,800 BTC worth nearly $770 million, further solidifying its position in the cryptocurrency market.
See More
