10 Most Volatile Stocks To Buy Right Now

5. Block (NYSE:SQ)  

Number of Hedge Fund Investors: 59  

Beta: 2.49

Block (NYSE:SQ), formerly known as Square, is a financial services and mobile payments company known for its  Square and Cash App, which enables businesses and individuals to send and receive payments. The company also owns TIDAL which helps artists to become entrepreneurs and connect with fans.

In Q2, Block (NYSE:SQ) reported that its net revenue increased 11% to $6.16 billion compared to the same quarter in the previous year. The revenue growth was driven by strong momentum across the Cash App ecosystem, which contributed $4.13 billion to net revenues in the reported quarter, up 12% year over year due to the company’s buy now, pay later (BNPL) program. The company also witnessed solid traction across the Square ecosystem, generating $1.98 billion in revenues, up 9% year over year.

For Q3, Block (NYSE:SQ) expects gross profit to reach $2.22 billion, representing a 17% year-over-year increase. Adjusted EBITDA is forecasted to be $695 million, while adjusted operating income is expected to be $320 million. Looking ahead to the full year 2024, Block (NYSE:SQ) has raised its guidance for gross profit to $8.89 billion, indicating an 18% increase from 2023. The company has also increased its guidance for adjusted EBITDA to $2.90 billion and operating income to $1.44 billion, up from $2.76 billion and $1.30 billion, respectively.

Block’s (NYSE:SQ) management has made significant progress in reducing fixed costs as a share of revenue, within product development, sales & marketing, and general & administrative. 59 hedge funds own shares of the company as of the second quarter, with a combined value of $2.68 billion.