Wednesday, February 1, 2023
HomeMarketJack Dorsey's Block Payment Platform Falls on Downgrade

Jack Dorsey’s Block Payment Platform Falls on Downgrade

Block allows consumers and businesses to pay each other.

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Courtesy Block

Shares in payments platform
Block
fell early Wednesday after analysts at
Oppenheimer
downgraded the stock to Perform from Outperform.

Block
(ticker: SQ), started by Twitter co-founder Jack Dorsey and previously known as Square, slipped 3.8% to $77.76 in premarket trading. It’s still up more than 30% over the past month.

“We don’t believe we have seen the bottom in stocks and thus we could see the recent SQ rally evaporate,” analyst Dominick Gabriele wrote in a Jan. 24 note. It will probably be difficult for Block to protect its earnings in a downturn, he said.

Block is still trading some 27% below levels from a year ago. It was swept up in the great technology-company selloff of 2022 as the Federal Reserve raised interest rates at the fastest pace in a generation, hammering high-growth stocks.

The company didn’t immediately return a request for comment early on Wednesday.

Write to Brian Swint at brian.swint@barrons.com

Credit: marketwatch.com

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