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

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.

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More reading

• ASX 200 midday update: Megaport rockets, Allkem’s update, tech shares rally
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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.

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