Block: Crypto Miss

Description

Summary Block's bitcoin trading generates high revenue but negligible profit, limiting its impact on overall business performance and valuation. The company has limited innovation, with Cash App and Square no longer driving significant growth; recent product tweaks haven't moved the needle. Block's surprise S&P 500 inclusion caused a stock price jump, but fundamentals remain unchanged and growth catalysts are lacking. The stock will likely trade at ~21x 2026 EPS target after the S&P 500 bump, re...