3. Block, Inc. (NYSE:XYZ)
Year-to-Date Performance: -24.73%
Average Price Target Upside Potential According to Analysts: 50.08%
Number of Hedge Fund Holders: 81
Block, Inc. (NYSE:XYZ) is an American financial technology company that ranks among the worst-performing stocks to buy. The company provides a range of products and services. Through its main product, Square, the company makes commerce and financial services accessible to sellers. Cash App allows users to send, receive, or hold money, invest in stocks and Bitcoin, apply for personal loans, and file taxes. Block, Inc. (NYSE:XYZ) owns Afterpay, a buy now, pay later (BNPL) business. Additionally, the company offers music streaming services through Tidal. Block, Inc. (NYSE:XYZ) operates a diverse business model that serves various customer needs and generates multiple revenue streams.
The company is focused on growing its business through innovative strategies and product development. In 2024, Block, Inc. (NYSE:XYZ) focused on improving Square’s onboarding, commerce, and app infrastructure. The company launched a new single app for sellers to simplify the onboarding process and make Square’s features more accessible. Additionally, Block, Inc. (NYSE:XYZ) introduced new products to support sellers, such as scan-to-pay functionality and house accounts. These moves will help the company expand into new markets and enhance customer experience.
The company continues to expand its financial services ecosystem through Cash App’s “bank our base” strategy. Block, Inc. (NYSE:XYZ) aims to make Cash App the leading banking service provider for US households earning up to $150,000 per year. The company is creating competitive banking offerings and introducing benefits like free overdraft coverage, a 4% interest rate on savings, and priority phone support. In February 2024, Block, Inc. (NYSE:XYZ) integrated Afterpay with the Cash App Card, allowing customers to retroactively pay over time for their purchases. These moves are aimed at increasing engagement and usage across the company’s platforms. Block, Inc. (NYSE:XYZ) reported that Cash App Card has successfully grown to 25 million monthly active users as of December 2024.
