U.S. Markets close in 4 hrs 24 mins
  • S&P 500

    3,773.89
    -9.39 (-0.25%)
     
  • Dow 30

    30,171.12
    -102.75 (-0.34%)
     
  • Nasdaq

    11,148.48
    -0.16 (-0.00%)
     
  • Russell 2000

    1,757.86
    -4.83 (-0.27%)
     
  • Crude Oil

    88.38
    +0.62 (+0.71%)
     
  • Gold

    1,721.50
    +0.70 (+0.04%)
     
  • Silver

    20.61
    +0.07 (+0.35%)
     
  • EUR/USD

    0.9834
    -0.0152 (-1.5242%)
     
  • 10-Yr Bond

    3.8140
    +0.0550 (+1.46%)
     
  • Vix

    29.34
    +0.79 (+2.77%)
     
  • GBP/USD

    1.1186
    -0.0289 (-2.5157%)
     
  • USD/JPY

    144.7970
    +0.5980 (+0.4147%)
     
  • BTC-USD

    20,100.15
    +162.66 (+0.82%)
     
  • CMC Crypto 200

    457.52
    -5.60 (-1.21%)
     
  • FTSE 100

    7,006.15
    -46.47 (-0.66%)
     
  • Nikkei 225

    27,311.30
    +190.77 (+0.70%)
     

Block stock drops after Evercore ISI double downgrades shares

Yahoo Finance Live anchor discuss Evercore ISI downgrading Block from Outperform to Underperform.

Video Transcript

[AUDIO LOGO]

JULIE HYMAN: Also watching shares of Block. On another analyst call today, this one is a downgrade. A double downgrade, in fact, sending the shares down 5%. Evercore ISI making the call. They lowered the rating on Block to underperform, citing increased competition and an expected slowdown in macroeconomic growth.

Evercore also slashing the price target on Block from $2-- to $1-- excuse me, from $120 to $55, sorry about that. So definitely seeing a lot of competition in this space, whether you're talking about PayPal or whether you're talking about Apple Pay. Remember, also, that Block owns Afterpay now. So is exposed to that what has been a volatile "buy now, pay later" space.

BRAD SMITH: Yeah, and that "buy now, pay later" space also going to get more complicated from the likes of, you guessed it, Apple. Apple introduced Apple Pay Later. It comes back to the install base there. Gives customers more flexibility to make purchases with their Apple devices, as Apple executives had noted on their most recent earnings call as well. And so for PayPal, Block, Apple, all of them paying more so.

In a crowded environment where, for consumers, when we're seeing them lean more into their credit card purchases right now. And this is critical going into the rest of this year, especially as we are kind of squarely staring down Q4 just weeks away at this point in time.

As that spending starts to increase-- if you do see spending increase on credit card purchases specifically, that in the BNPL space, in the "Buy Now, Pay Later" space squarely puts Block, Apple, and PayPal into focus there. And if you do see any of them with the most room to grow, it's really Apple there.

And so I think that's where it really is the larger question around where some of the growth components for Square, Block, would be at this point in time, too, even with the acquisition of Afterpay that's going through.

JULIE HYMAN: Yeah.