Block Inc Class A

SQ: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$83.00	Dggrg	Nbxdktmb

Block Earnings: Good Profitability, but Growth at Square Slows

Brett Horn

Aug 2, 2024

We think Block’s second-quarter results were a bit of a mixed bag with the company seeing ongoing improvement in profitability, but growth at Square came in a little weak. Overall, we think improving profitability should be the bigger priority, but in the long run the payments industry is scale-driven and volume growth has a large impact on moats. We maintain our $90 fair value estimate for the narrow-moat company. We see shares as undervalued, but highlight our Morningstar Uncertainty Rating of Very High.

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