Why is the Block share price storming 5% higher today?

Happy man wearing a blue shirt and glasses holding a card and using buy now pay later services to purchase a product on his office computerHappy man wearing a blue shirt and glasses holding a card and using buy now pay later services to purchase a product on his office computer

The Block Inc (ASX: SQ2) share price is soaring today amid a positive day for buy now pay later (BNPL) shares.

The company’s shares are currently swapping hands at $100.63, a 4.71% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is rising 1.61% at the time of writing.

Let’s take a look at why the Block share price is rising today?

Why is the Block share price rising?

Block shares are leaping following a strong night for the company’s US listing on the New York Stock Exchange.

Block Inc (NYSE: SQ) leapt 4.5% in the USA on Tuesday and jumped a further 1.5% in after hours trade.

This follows a stellar night for technology and financial shares in the USA. The S&P 500 Index leapt 2.76%, while the tech heavy NASDAQ-100 Index rose 3.13%.

This rise came despite an analyst at Macquarie shifting its rating on Block’s US listing to neutral with a $64 price target, according to my Foolish colleagues in the US. Susquehanna analyst Jamie Friedman also slashed the price target to $100 per share from $160, however, he retained a buy recommendation on the Block share price.

Despite these price downgrades, it appears investors have bought up Block shares amid positive sentiment in the wider market.

Block is not the only BNPL company in the green today. Zip Co Ltd (ASX: ZIP) shares are leaping 8.48%, while Sezzle Inc (ASX: SZL) shares are rising 4.88%.

Block completed its takeover of Afterpay on the first day of February and listed on the ASX as SQ2.

Block share price snapshot

The Block share price has surged 24% in the past month. However, it has lost nearly 43% in the year to date.

For perspective, the benchmark ASX 200 Index has lost 3% in the past year.

Block has a market capitalisation of about $3.8 billion based on the current share price.

The post Why is the Block share price storming 5% higher today? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/1Je7igA

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s