Block Stock Tumbles as Slower Consumer Spending Hurt Results

Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now

Bill McColl

Fri, Feb 21, 2025, 8:00 AM 1 min read

Key Takeaways

Block's profit, sales, and outlook were short of forecasts as consumer spending slowed.
CEO Jack Dorsey said the Square and Cash App parent spent last year making changes in the organization.
Jefferies called 2025 a "now or never" year for Block.

Shares of Block (XYZ) sank 12% Friday, a day after the provider of online payment systems' results and guidance missed estimates as consumer spending slowed.

The Square and Cash App parent reported fourth-quarter adjusted earnings per share (EPS) of $0.71, with revenue up 4.5% year-over-year to $6.03 billion. Analysts surveyed by Visible Alpha were looking for $0.90 and $6.32 billion, respectively.

CEO Jack Dorsey said the company spent 2024 "looking critically at our organization and making changes so we can build much faster." Dorsey added that most of that work has been completed and that "positions us for a strong financial outlook in 2025, with momentum building throughout the year."

The company sees full-year gross profit of $10.22 billion, while the Visible Alpha estimate was for $10.30 billion.

Jefferies Says 2025 'Now or Never' Year for Block

Jefferies, which has a "buy" rating on the stock, called 2025 a "now or never" year for Block, writing that while the size of the estimated acceleration of the business "is likely to be met with some skepticism, we take some comfort in mgmt. framing as having 'clear visibility' into the drivers."

Even with today's losses, Block shares are about 11% higher over the last year.