Block stock rising over Q4 revenue beat, upbeat guidance
Block (SQ) shares maintain gains in the green ahead of Friday's market close. The fintech company topped fourth-quarter revenue expectations, posting figures of $5.77 billion on Thursday. Yahoo Finance Live takes a look at Block's stock movement on its upbeat full-year guidance.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
- Our shares of block are soaring today. That's after the company raised its full year profit guidance by more than $200 million, forecasting 2024 earnings of at least $2.63 billion. So heading into this one, Julie, the stock was not working, but it is now.
It is surging. Results beat. Q1 guidance beat. And, of course, a number of different units within this one, right, including Square.
You've got Cash App. And revenue for Cash App jumped more than 30%, by the way, to $3.9 billion. That was also a beat.
JULIE HYMAN: Yeah, it seems like an investors analysts are also happy about the cost cutting that is going on. As we noted yesterday, Jack Dorsey, in his letter to investors, said our workforce is now at 12,000, and 12,000 is the cap. We're going to operate below that.
Harshika Rawat over at Bernstein has apparently compared Block to Meta in terms of its philosophy, its approach towards cost cutting and efficiency. And once, again, she talked about the company finding religion on operating expenses. She said, quote, "This helped to pull Block out of a no man's land of not being growthy enough for growth investors or profitable enough for those who are focused on growth at a reasonable price."
- Yeah. Well, if you're a bull, you like that comparison to Meta. That helps.
One wrinkle there, I'm still interested in these reports, Julie, that whistleblowers alleging that Cash App didn't do enough due diligence it sounds like on customers. And apparently, now regulators are probing this. So it's just one thing for investors to keep in mind and keep watching.
JULIE HYMAN: Yeah, definitely.
