Why is ASX 200 tech share Block dropping like a stone today?

The Block Inc (ASX: SQ2) share price is having a tough day on the market today.

Block shares are down 8.34% and are currently trading at $85.08.

So why is this ASX 200 tech share struggling today?

What’s happening?

Block is falling today despite multiple Buy Now, Pay Later (BNPL) shares having a good day. For example, the Zip Co Ltd (ASX: ZIP) share price is up 4.22% today on the back of a quarterly update, while the Sezzle Inc (ASX: SZL) share price is up 2.81%.

However, Tyro Payments Ltd (ASX: TYR) shares are down 2.83% today. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) is 3.95% in the red at the time of writing.

Block is following in the footsteps of its US New York Stock Exchange listing today. Block Inc (NYSE: SQ) dropped 5.91% in the USA overnight.

Analysts at Jefferies have cut the price target on Block to $70 from $105, according to a report on NAB Trade. This is a 33% downgrade on its outlook for the Block share price.

Block recently made the list of the 10 most shorted shares on the ASX, which my Foolish colleague James reported on Monday.

Block listed on the ASX as SQ2 in February after taking over Afterpay.

Block share price snapshot

Block shares have slumped 52% in the year to date, while they have fallen 12% in a month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has fallen 9% in the last year.

This ASX 200 tech share has a market capitalisation of more than $3 billion based on the current share price.

The post Why is ASX 200 tech share Block dropping like a stone today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here’s why the Block share price just rocketed 8%
• These are the 10 most shorted ASX shares
• Down 49% this year, here’s why I’m still holding my Block shares
• After a horror year, what’s next for ASX BNPL shares in the new quarter?

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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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