These 5 Stocks are Falling Today

1. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 72

Shares of Block, Inc. (NYSE:SQ) slid nearly four percent in pre-market trading Wednesday after Evercore ISI downgraded the financial services company from “Outperform” to “Underperform.”

Evercore ISI analyst David Togut pointed towards increasing challenges for Block’s seller and buy now, pay later (BNPL) segments. Togut believes intensifying competition and decelerating macroeconomic growth would weigh on these segments. He also trimmed his price target for Block, Inc. (NYSE:SQ) from $120 per share to $55 per share.

Separately, Block, Inc. (NYSE:SQ) also appeared in the second-quarter 2022 investor letter of asset management firm Baron Funds. Here’s what the firm said:

“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”

You can also take a peek at Best Cybersecurity Stocks to Buy Now and 10 Best Cyclical Stocks for Inflation.

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