Block is 'a bottom line story,' buy it: Analyst
Fintech companies are in the spotlight as major players such as Block (SQ) and MicroStrategy (MSTR) report their quarterly earnings. Block reported revenue of $6.16 billion, falling short of the expected $6.31 billion, but beat with adjusted earnings of $0.93 a share versus the anticipated $0.85. MicroStrategy fell short on revenue, reporting $111.4 million against estimates of $119.3 million. Mark Palmer, Benchmark managing director & senior research analyst of fintech and digital assets, join Asking for a Trend to discuss the fintech space. Palmer describes Block's performance as "a better than expected quarter... pretty much across the board." He attributes the weakness primarily to challenges in the cryptocurrency sector, while noting "solid beats" throughout other areas. Despite missing revenue estimates, Palmer emphasizes that Block has "really become a bottom line story," creating ongoing operating leverage and making it "a good buy." Regarding cryptocurrency, particularly bitcoin (BTC-USD), Palmer remains "bullish on the outlook." He points to the recent bitcoin halving as having "created a nice setup for bitcoin's price going forward." For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Angel Smith
