We recently published an article titled Why These 15 Large-Cap Stocks Are Plunging So Far In 2025. In this article, we are going to take a look at where Block, Inc. (NYSE:XYZ) stands against the other large-cap stocks.
The big and large-cap stocks have spearheaded the rally in the past two years, but Wall Street’s expectations have gotten ahead of many of their fundamentals. The Nasdaq briefly entered correction territory as the stock market cooled over the past week due to tariff fears and a perceived slowdown in the growth of AI, which then spilled into the data center industry.
Wall Street is now reassessing the growth premium they are paying for many of these large-cap stocks. A lot of them have tumbled in the past week and have done so in a much more severe way than the broader market.
That said, large companies have staying power, and many of them could now be undervalued.
Methodology
For this article, I screened the worst-performing large-cap stocks ($10 billion to $100 billion) year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An individual using a laptop to access the fintech platform to manage their finances.
Block, Inc. (NYSE:XYZ)
Number of Hedge Fund Holders In Q4 2024: 81
Block, Inc. (NYSE:XYZ) is a fintech company. It owns Cash App.
The stock is down significantly so far in 2025 as Block is facing a class-action lawsuit over allegations of compliance failures. This includes potentially facilitating illegal transactions on Square and Cash App platforms.
It has also been accused of inflating its user metrics and doing inadequate due diligence.
On top of that, Block’s Q4 2024 results missed Wall Street expectations. EPS of $0.26 fell short of consensus estimates of $0.37, and revenue came in at $6.03 billion vs. the $6.23 billion forecast.
The company is also heavily involved in crypto, and the recent decline in Bitcoin prices has added to Block’s woes.
The consensus price target of $96.31 implies 57.73% upside.
Block, Inc. (NYSE:XYZ) stock is down 28.09% year-to-date.
Overall XYZ ranks 7th on our list of the large-cap stocks that are plunging so far in 2025. While we acknowledge the potential of XYZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XYZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
