Why is the Block share price charging 10% higher on Thursday?

A young man wearing glasses and a denim shirt sits at his desk and raises his fists and screams with delight as he watches the ResApp share price go 50% higher todayA young man wearing glasses and a denim shirt sits at his desk and raises his fists and screams with delight as he watches the ResApp share price go 50% higher today

The Block Inc (ASX: SQ2) share price is soaring today, following in the footsteps of its US listing.

The ASX buy now pay later (BNPL) company’s share price is up 10.18%, trading at $127.57 at the time of writing. For perspective, the S&P/ASX 200 Index (ASX: XJO) is currently 0.28% higher.

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

Why is the Block share price rising?

Block is not the only BNPL company in the green today. The Zip Co Ltd (ASX: ZIP) share price is up 6.79%, while Sezzle Inc (ASX: SZL) shares are 7.34% higher.

Block’s ASX listing appears to be following a similar path to the company’s US listing on Wednesday. Block Inc (NYSE: SQ) shares leapt 11.35% on the New York Stock Exchange overnight.

Financial and technology shares lifted after PayPal’s results improved optimism, Reuters reported. The NASDAQ Composite Index jumped 2.59%, while the S&P 500 Index gained 1.56%.

Wedbush Securities managing director Sahak Manuelian said in comments cited by the publication:

We’re going through Q2 earnings and, by and large, from the tech complex to consumer discretionary and industrials, we’re seeing a lot of better-than-feared prints, and that’s just good enough right now.

PayPal Holding Inc (NASDAQ: PYPL) reported net revenue lifted 9% year on year to $6.8 billion. The company also confirmed Elliott Investment Management has a $2 billion stake in the company. PayPal shares lifted 9% on the back of the results.

In Australia, the S&P/ASX All Technology Index (ASX: XTX) is 2.85% higher so far today.

Block is due to report its financial results on 4 August, US time.

Block share price snapshot

The Block share price has fallen 28% year to date, however, it has soared 44% in just the past month.

For perspective, the benchmark ASX 200 Index has shed 6% in 2022 so far.

Block has a market capitalisation of about $4.8 billion based on the current share price.

The post Why is the Block share price charging 10% higher on Thursday? 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘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., PayPal Holdings, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended PayPal Holdings. 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/YIQdvoe

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