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Block, Inc. (SQ) creates tools that enables sellers to accept card payments and provides reporting and analytics, and next-day settlement. 
It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts Europay, MasterCard, and Visa (EMV) chip cards and Near Field Communication payments; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution.
The Company is made up of Square, Cash App, Spiral, TIDAL, and TBD54566975.
On November 3rd, SQ reported 3rd Quarter September 2022 earnings of $0.39 per share on revenue of $4.5 billion. The consensus earnings estimate was $0.23 per share on revenue of $4.5 billion. Revenue grew 17.4% on a year-over-year basis.
Yesterday after the close Block upgraded to Outperform from Neutral at Macquarie. Macquarie analyst Paul Golding upgraded Block to Outperform from Neutral with a $100 price target. The shares have fallen 20% since the analyst's downgrade to Neutral in late July, a time he saw market risk and risk to consensus EBITDA as potential pitfalls in the coming periods. With the shares "now de-rated and operating leverage flowing through," Block has improved upside/ downside positioning across shares and fundamentals, Golding tells investors in a research note. He says the company's cost cuts and "on-ramps" came through in Q3.
Shares have moved above their 50-day moving average on heavy volume. We expect the momentum to the upside to continue.
Entry Point: $63.00
Stop Loss: $59.55
Trading Range: $51.34 - $241.50
Target Pirce: $69.50
