Block: A Must-Watch Stock for 2025
As we move forward into 2025, investment opportunities abound, but few have the potential for explosive growth like Block, Inc. (formerly known as Square). Recently highlighted by Bernstein analyst Harshita Rawat, Block is positioned as one of the top stocks to pay attention to, and here’s why.
Price Target Adjustment Signals Growth
In a recent report, Rawat raised her price target for Block from $90 to $120—a significant upgrade that suggests a potential surge of 35% for investors if the stock reaches this new target. It’s not just about numbers; this bold move reflects a growing confidence in the company’s trajectory, especially as it diversifies its offerings and expands its market reach.
A Diverse Product Portfolio
Block’s business model is multi-faceted, encompassing various key components that target different aspects of financial technology. The company is not just the parent of the well-known Square point-of-sale system; it also operates Cash App, a digital wallet that has revolutionized personal finance management. Moreover, with its recent acquisition of Afterpay, Block has tapped into the increasingly popular buy now, pay later (BNPL) segment.
While these areas have faced regulatory scrutiny, there’s a prevailing optimism regarding a more lenient regulatory environment in the near future—an environment that could allow Block to thrive. Regulatory changes are typically challenging for businesses, but those who navigate them effectively stand to gain substantial benefits, particularly if they are prepared with innovative solutions.
Growth Prospects and Strategic Initiatives
Rawat’s analysis indicates that Square’s gross payment volume could rise from 2% to 3% in 2025. This growth is not just a number on a page; it’s underpinned by strategic initiatives designed to drive efficiency and profitability. For instance, the potential for increased direct deposit penetration through Cash App is noted as the number one driver of long-term growth for the company. This could lead to fantastic results, with projections suggesting a 30% EBITDA growth.
Additionally, Rawat points towards an anticipated mid-teens gross profit growth as Block continues not only to innovate but also to enhance its borrow and commerce initiatives, including Cash App’s features like Afterpay. By honing in on user experience and expanding their product suite, Block can capitalize on user retention and acquisition simultaneously.
A Likely S&P 500 Contender
Another aspect to consider is the potential for Block to be included in the S&P 500 index. This is no small feat, as inclusion brings with it heightened visibility and can lead to increased investment from index funds. Rawat states that while it’s challenging to determine the timing, Block now checks many of the boxes necessary for S&P inclusion. For investors, this represents an exciting prospect; stocks that enter the S&P 500 typically experience significant upward momentum.
Stock Performance and Market Position
As of now, Block has seen a notable increase of 21.2% in 2025, slightly underperforming in comparison to the broader market’s growth. However, the recent jump of over 5% in a single day demonstrates market confidence and speaks to the stock’s volatility which, while sometimes unnerving, can provide great opportunities for savvy investors.
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Now is the time to explore Block’s potential more closely. Join us at Extreme Investor Network for in-depth analysis, expert guidance, and lucrative investing strategies that can help maximize your portfolio’s growth—because your financial future deserves the best.