Block (XYZ) Stock Climbs as Cash App Becomes a Banking Platform

TLDR

• Block (XYZ) rose 5.39% to $63.20 Wednesday as a 15% crude oil plunge triggered a broad risk-on rally
• Cash App gross profit grew 33% year-over-year to $1.83 billion in the latest quarter, with 59 million monthly transacting actives
• Square GPV rose ~10%, with international GPV up ~25% in constant currency; new volume added hit its strongest growth on record
• Block launched Square Restaurant Inventory by MarketMan globally on April 2, deepening its merchant ecosystem
• Wall Street holds a Strong Buy consensus with an average price target of $84.31, implying ~34% upside from current levels

Block had a strong Wednesday, climbing 5.39% to $63.20 as crude oil collapsed roughly 15% to around $95 a barrel on hopes of a conditional two-week ceasefire tied to U.S.-Iran talks. That sparked a broad risk-on move, with S&P 500 futures up nearly 3% and investors rotating back into growth and fintech names.

Block, Inc., XYZ

Block fits that mold. It runs a two-sided ecosystem — Square for merchants and small businesses, Cash App for consumers — that tends to benefit when macro pressure eases and spending picks back up.

Despite Wednesday’s gain, XYZ is still down about 22% over the past six months, so there’s ground to recover.

Cash App Powers the Bull Case

Cash App is the strongest part of the business right now. In the latest quarter, gross profit from Cash App grew 33% year-over-year to $1.83 billion, beating expectations. Monthly transacting actives hit 59 million, and primary banking actives climbed to 9.3 million, up roughly 22% year-over-year.

Borrow, Block’s short-term lending tool inside Cash App, is now available in nearly all U.S. states. Origination volume grew more than three times year-over-year, and returning borrowers can qualify for larger loans at lower risk to Block.

Management has said Cash App has historically held up well under inflation — and today it has more tools to help users manage cash flow than in prior stress periods.

On the product side, Block launched Square Restaurant Inventory by MarketMan globally on April 2. The tool gives restaurants ingredient-level insights, recipe management, and menu optimization inside the Square platform — reducing the need for third-party systems.

Square Finds Its Footing

Square isn’t growing as fast as Cash App, but it’s moving in the right direction. Gross payment volume rose around 10% last quarter, with international GPV up roughly 25% in constant currency. Quarter-to-date trends through late February showed Square GPV growth accelerating above 11%.

New volume added hit its strongest growth on record. Field sales, partnerships, and ISO channels were key contributors. Block ended the year with 140 field sales reps, with partners like Sysco and US Foods driving roughly half of inbound leads.

Block’s AI tool, Goose, is saving engineers an estimated 8–10 hours per week. Management says the recent workforce reduction was about improving product speed, not just cutting costs.

Loop Capital initiated coverage on March 31 with a Buy rating and a $75 price target. Truist Securities upgraded to Buy in March, raising its target to $77.

The average analyst price target sits at $84.31, implying roughly 34% upside from current levels. The stock carries a Strong Buy consensus from 27 Buy ratings, two Hold, and one Sell.

Block’s next earnings report is estimated for April 30. Analysts expect EPS of 52 cents and revenue of $6.23 billion, up from $5.77 billion a year ago.

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