Ark Invest Stock Portfolio: Top 10 Stocks to Buy

8. Block, Inc. (NYSE:XYZ)

Number of Hedge Fund Holders as of Q4: 81

Ark Invest’s Equity Stake: $418.82 Million 

Block, Inc. (NYSE:XYZ) is a leading American technology company specializing in financial services for both consumers and merchants. Founded in 2009 by Jack Dorsey, the company has established itself as the U.S. market leader in point-of-sale systems, offering innovative payment solutions that empower businesses of all sizes. Through its ecosystem of financial products, including Square, Cash App, and Afterpay, Block continues to drive the evolution of digital commerce and financial accessibility.

With a market capitalization of $47.31 billion, Block, Inc. (NYSE:XYZ) reported its fourth-quarter 2024 earnings, missing both earnings per share and revenue forecasts. Reported EPS stood at $0.71, falling short of the expected $0.86, while revenue reached $6.03 billion, missing the forecasted $6.24 billion. The company’s stock reacted negatively in aftermarket trading, dropping 7% following the announcement. Despite this quarterly miss, Block’s long-term financial performance remains strong, driven by growth in its key segments, Square and Cash App.

For the full year 2024, Block, Inc. (NYSE:XYZ) delivered robust financial results, reporting a gross profit of $8.89 billion, an 18% increase year-over-year. The Square and Cash App divisions contributed significantly, with gross profit growth of 15% and 21%, respectively. Adjusted EBITDA surged by 69% to $3.03 billion, while adjusted operating income grew 4.5 times to $1.61 billion. Additionally, the company’s adjusted free cash flow saw an impressive jump to $2.07 billion from $515 million the previous year. Looking ahead, Block, Inc. (NYSE:XYZ) has set an ambitious gross profit target of at least $10.22 billion for 2025, representing a projected 15% growth.

Despite the short-term stock decline, analysts suggest that Block remains undervalued, presenting a potential buying opportunity. The stock has gained 29.3% over the past six months, demonstrating strong momentum. Moreover, Block maintains a solid financial position, with a current ratio of 2.07, reflecting strong liquidity. With its continued focus on innovation and expanding financial services, Block, Inc. (NYSE:XYZ) is well-positioned for future growth, even as market volatility remains a factor with its beta at 2.52.