Block (XYZ) Stock Falls 7%, Then Rebounds — Here’s What You Need to Know

TLDR

• Block stock fell 7% on March 12 to around $60, partly triggered by a legal investigation into whether officers and directors breached fiduciary duties.
• Despite the drop, the stock has since rebounded to around $80–$81, well above its 52-week low of $44.27.
• In late February, CEO Jack Dorsey announced cuts of more than 4,000 jobs, dropping headcount from above 10,000 to under 6,000.
• The restructuring drove a roughly 18–25% stock jump around the announcement as Block raised its gross profit outlook.
• Analysts remain broadly bullish, with a Buy consensus and 12-month price targets ranging from around $50 to $105.

Block stock dropped 7% on March 12, falling to around $60. Part of the pressure came from investor rights law firm Halper Sadeh LLC, which launched an investigation into whether Block’s officers and directors violated fiduciary duties owed to stockholders.

Block, Inc., XYZ

The selloff came despite Block being in the middle of a significant operational reset. In late February, CEO Jack Dorsey announced the company would cut more than 4,000 jobs, nearly halving its workforce from above 10,000 to just under 6,000. The company argued that AI tools and leaner teams could do the job.

The market liked it. Around the announcement and a revised guidance update, the stock jumped roughly 18–25%. Block raised its gross profit outlook and guided first-quarter operating income ahead of consensus.

So from $60, where does the stock actually stand today?

Valuation and Fundamentals

Trading around $80–$81 as of this writing, Block sits comfortably above its 52-week low of $44.27 and not far off its 52-week high of $94.25. The ticker, now XYZ, was rebranded from SQ.

On the numbers, trailing 12-month earnings per share sit at about $2.36, with a price-to-earnings ratio near the high 20s. Annual revenue is around $24.2 billion. Net income is running above $1.3 billion.

The profitability picture is decent but not exceptional. Operating margin is 12.6%, compared to the S&P 500’s 18.7%. Net income margin is 5.4% against the index’s 12.8%.

Where Block stands out is cash. The company holds $12 billion in cash against $40 billion in total assets — a cash-to-assets ratio of 30.3%, versus 7.3% for the S&P 500. That’s a solid cushion.

Revenue growth is a trickier story. Block averaged 11.8% growth over the past three years, but the last 12 months showed just 0.3% growth. The most recent quarter improved to 3.6%, still trailing the broader market’s 7.2%.

Analyst Sentiment

The sell-side is broadly positive. Around 30 to 38 analysts cover the stock, with the consensus sitting at Buy. MarketBeat data show roughly 22 Buy, 4 Strong Buy, 9 Hold, and 3 Sell recommendations.

Average 12-month price targets sit in the high-$70s to low-$80s range. StockAnalysis puts the average at about $79.60. MarketBeat’s broader sample comes in at roughly $82.40, with individual targets ranging from around $50 to $105.

Bank of America recently trimmed its target from $86 to $75, keeping its Buy rating while marking down valuation multiples across payment names.

Full-year 2024 gross profit came in at $10.36 billion, up around 17% year on year. Block guided first-quarter 2025 gross profit at roughly $2.8 billion versus the $2.72 billion consensus. Some forecasts now point to gross profit approaching $12 billion and adjusted operating income near $2.7 billion by fiscal 2026.

Cash App showed strength in monthly active users, with rapid growth in products including Cash App Borrow.

With a beta above 2.5, the stock remains sensitive to broader market moves — and the Halper Sadeh investigation adds a layer of near-term uncertainty that investors will be watching closely.

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