Block, Leads the Way in Mobile Payments with Cash App Pay and Acquisition of Afterpay Limited
January 14, 2023
Trending News 🌧️
Block Intrinsic Value – Block ($NYSE:SQ), Inc. is a publicly traded American technology and financial services corporation based in San Francisco, California. It is a leader in the mobile payments sector, offering innovative solutions to businesses and consumers. The Cash App Pay feature allows users to securely and quickly pay for goods and services using their cash app account. This payment method is accepted at a variety of merchants and businesses, giving users more options when making purchases. Cash App Pay also provides a secure payment experience with fraud protection features, so users can feel confident when making payments.
The “Buy Now, Pay Later” system offered by Afterpay Limited gives users the ability to purchase an item and spread out the payments over time. This provides customers with more flexibility when making purchases, as they can pay for an item over an extended period of time and avoid being charged interest. This system also encourages customers to return to the store or business they purchased from, as they will be able to use the same payment plan for future purchases. With this move, Block, Inc. is demonstrating their commitment to providing innovative solutions for businesses and consumers alike.
Share Price
Despite the media coverage primarily being negative, Block, Inc. has seen a positive response from the market. On Wednesday, Block stock opened at $71.0 and closed at $71.7, up by 2.3% from its previous closing price of $70.0. This surge in stock price is indicative of the optimism of investors who believe that Block, Inc is on the cusp of something special in the mobile payment industry. Cash App Pay provides customers with an easy and secure way to make payments, allowing them to pay for goods and services with their smartphones. It remains to be seen whether or not Block, Inc’s moves in the mobile payment space will pay off.
However, investors are optimistic that the company’s recent acquisitions are a sign of good things to come. Only time will tell if Block, Inc will be able to capitalize on their investments and lead the way in mobile payments. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Block. More…
| Total Revenues | Net Income | Net Margin |
| 16.96k | -503.75 | -2.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Block. More…
| Operations | Investing | Financing |
| 324.89 | 1.45k | -839.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Block. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 29.12k | 12.59k | 27.66 |
Key Ratios Snapshot
Some of the financial key ratios for Block are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 57.6% | – | -2.8% |
| FCF Margin | ROE | ROA |
| 1.0% | -1.8% | -1.0% |
VI Analysis – Block Intrinsic Value
Block (BLOCK) is a company that has strong fundamentals and long-term potential. VI app has made it easier to analyze the company’s fundamentals in order to evaluate its intrinsic value. VI Line’s analysis of Block yields an intrinsic value of around $159.3 per share. Currently, Block is trading at around $71.7 per share, making it a great buying opportunity with the stock being undervalued by 55%. Investors should consider investing in Block as the company has good fundamentals, such as its consistent revenue growth, strong balance sheet, and reasonable debt levels. Furthermore, the company is well-positioned to benefit from potential catalysts that could increase its value. These catalysts may include technological advancements, industry trends, and a strong competitive landscape. Investors should also consider Block’s track record of profitability, which is an important indicator of the company’s long-term success. The company’s gross profit margins have remained relatively stable over the past few years, indicating that the company is effectively managing its costs. Additionally, Block has been able to grow its earnings and cash flows over the same period. In conclusion, Block is a solid investment opportunity due to its strong fundamentals, undervalued stock price, and potential catalysts. Investors should keep an eye on the company’s financial performance and any potential catalysts in order to make a more informed investment decision. More…
VI Peers
Its competitors are Affirm Holdings Inc, Fiserv Inc, Shopify Inc.
– Affirm Holdings Inc ($NASDAQ:AFRM)
Affirm Holdings Inc is a provider of financing options for consumers at the point of sale. Affirm’s mission is to empower consumers with honest financial products and services that drive economic growth. Affirm was founded in 2012 by Max Levchin, who also co-founded PayPal, and is headquartered in San Francisco, CA. Affirm allows consumers to pay for purchases over time with simple, transparent financing options that are integrated into the checkout process. Affirm partners with over 2,000 merchants across a variety of industries, including retail, travel, and home goods. Affirm’s products are designed to increase sales and conversion while providing a better experience for consumers. As of 2022, Affirm has a market cap of 5.11B and a return on equity of -19.16%.
– Fiserv Inc ($NASDAQ:FISV)
Fiserv, Inc. is a leading global provider of financial services technology solutions. The company serves more than 30,000 clients in over 100 countries, including banks, credit unions, securities and investment firms, retailers, merchants, government agencies and individual consumers. Fiserv is a member of the S&P 500® Index and the FORTUNE® 500, and is among FORTUNE World’s Most Admired Companies®. The company provides integrated technology solutions, including transaction processing, account processing, electronic bill payment and presentment, mobile banking, and customer relationship management (CRM) to financial institutions and other clients worldwide.
– Shopify Inc ($TSX:SHOP)
Shopify Inc is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.
Summary
Block Inc. (BLOCK) has recently made a major move in the mobile payments space with the acquisition of Afterpay Limited and the launch of Cash App Pay. Although the initial media coverage has mostly been negative, investors may be wise to take a closer look at BLOCK’s potential in this rapidly growing industry. BLOCK is well-positioned to benefit from the increasing trend of digital payments, with its easy to use mobile app and low fees.
Additionally, the Afterpay acquisition provides a great opportunity for BLOCK to expand its customer base and tap into new markets. Investors should consider the potential long-term benefits of BLOCK’s involvement in the mobile payments industry before making any investing decisions.
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