The Block Inc CDI (ASX: SQ2) share price is going gangbusters today. At the time of writing, it’s up 10.87% at $158.45.
It has been two weeks since the fintech’s shares were last (briefly) at this level.
What’s going on with the Block share price?
Block shares are rising along with most of the S&P/ASX 200 Index (ASX: XJO). The ASX 200 is currently up by 1.19%.
Several ASX 200 financial and technology shares are currently surging higher including Pinnacle Investment Management Group Ltd (ASX: PNI), Zip Co Ltd (ASX: Z1P), Magellan Financial Group Ltd (ASX: MFG), and WiseTech Global Ltd (ASX: WTC). They are up 8.23%, 11.19%, 6.39%, and 5.53% respectively.
The US Federal Reserve has increased its interest rate by 25 basis points, the first increase in a few years.
Overnight, the US tech shares rallied after what some analysts called a “dovish” increase, according to reporting by the Australian Financial Review, rather than a 50 basis point increase which was being considered before the Russian invasion of Ukraine.
The US-listed Block Inc shares jumped by 12.6% overnight, so the ASX-listed Block shares are seeing a similar increase.
What’s next?
The Block share price has gone up 6.8% over the past month despite all the volatility.
But broker Macquarie thinks that Block shares can rise a lot more. The Block share price target is $230, which is a potential rise of around 45% in the next year.
The broker thinks that Block can grow its average revenue per user (ARPU) as users utilise more of Block’s overall offering.
The post The Block (ASX:SQ2) share price is soaring 11% today. Here’s why appeared first on The Motley Fool Australia.
Should you invest $1,000 in Block right now?
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More reading
- Why Arafura, Block, Magellan, and Qantas shares are storming higher
- Why Block, Breville, Megaport, and Webjet shares are falling today
- ASX 200 (ASX:XJO) midday update: Block falls, Nickel Mines jumps
- 5 things to watch on the ASX 200 on Friday
- Why is the Block (ASX:SQ2) share price soaring 8% today?
Motley Fool contributor Tristan Harrison owns Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc., PINNACLE FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. and PINNACLE FPO. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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