10 Best Digital Payments Stocks To Buy Now

8. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 59

Block, Inc. (NYSE:SQ) is a technology company focused on financial services. It is made up of Square, Cash App, Spiral, TIDAL, and TBD, all of which help people navigate the barriers to accessing the economy. Square offers an integrated ecosystem of commerce solutions, business software, and banking services for sellers to grow their business while Cash App allows sending, spending, or investing money in stocks or bitcoin. Spiral advances the use of Bitcoin by building and funding free, open-source projects whereas TIDAL is a platform for musicians and their fans. TBD eases access to Bitcoin and other blockchain technologies.

The firm’s two primary ecosystems Square and Cash App remain its core strengths. While Square was initially introduced to help sellers accept card payments, it now offers more than 30 distinct products and services to help them grow their businesses. Block has driven continued and sustained long-term growth by adding new sellers efficiently and cross-selling its products and services. In the year ended December 31, 2023, over 4 million sellers used the Square ecosystem to make 4 billion individual sales transactions totaling $209.6 billion of Square Gross Payment Volume. Simultaneously, Cash App recorded 56 million monthly transacting activities across the US and the U.K., as of December.

Block, Inc. (NYSE:SQ) recently delivered a strong second quarter with its gross profit going up 20% year-over-year. Square gross profit increased 15% year-over-year while Cash App’s gross profit climbed 23% year-over-year. For the 12 months ending in June 2024, Block had $1.43 billion in adjusted free cash flow, almost doubling from the preceding year.

The strength of the primary business segments, a strong financial performance, the ability to generate substantial free cash, and growth potential underscore the importance of Block, Inc. (NYSE:SQ) as a promising digital payments stock. Block has 59 hedge fund holders, as of Q2 2024. Catherine D. Wood’s ARK Investment Management was the leading shareholder among these hedge funds.