Stock in latest S&P 500 entry surged 510% since 2015 IPO, now considered a buy by Wall Street analysts
Block, formerly known as Square, has recently joined the prestigious S&P 500 index, marking its significant position in the evolving digital payments industry and the growing mainstream adoption of Bitcoin.
The company's inclusion in the S&P 500 is a testament to its success, having been among the first major public companies to add Bitcoin to its balance sheet, with its initial purchase made in October 2020. Block's current Bitcoin holdings amount to 8,584 coins, worth approximately $1.03 billion.
Block offers a diverse suite of tools for entrepreneurs and consumers, including payment processing, point-of-sale systems, business loans, digital retail, loyalty programs, marketing, digital wallet, and consumer loans. The heart of Block's expanding ecosystem is its two-pronged approach: Square Business, which caters to merchants, and Cash App, which focuses on consumers.
In its first quarter of 2025, Block reported impressive financial results. Its gross payment volume (GPV) grew by 7.2%, while its operating income saw a 32% year-over-year increase, reaching $329 million. The company's first quarter adjusted earnings per share (EPS) were $0.56, a 19% year-over-year increase. Block's gross profit also grew by 9% year-over-year, amounting to $2.29 billion.
Cash App, in particular, contributed to Block's performance, with an increase in user engagement. Gross profit per monthly active user grew by 9%. Block's revenue has soared 1,640% since its IPO, and net income has jumped 867% during the same period.
Financial projections indicate a moderate revenue growth trajectory for Block, averaging about 5-10% annually through 2029. EPS projections show wider variance but consensus estimates indicate earnings growth from $2.74 in 2025 to around $4.69 by 2029.
Analyst opinions are generally favourable, with a consensus rating of "Buy". TD Cowen analyst Bryan Bergin, for instance, has a buy rating and a $115 price target on the stock, representing potential upside of 44%. As of July 2025, 35 out of 47 analysts who covered the stock rated it a buy or strong buy.
However, some analysts have expressed caution, reflecting macroeconomic uncertainties and competitive pressures. For example, Jefferies recently lowered Block’s price target from $95 to $90 while maintaining a "buy" rating, suggesting some caution but continued upside.
Despite these near-term headwinds, the S&P 500 inclusion is expected to support Block’s stock price through mechanical buying from index funds and ETFs. Block is currently selling for 19 times trailing-12-month earnings and 2 times sales, indicating that it may be undervalued in the eyes of some investors.
In the coming months, Block has announced plans to begin accepting Bitcoin as a payment method, further solidifying its position as a leader in the digital payments industry. As the company continues to innovate and grow, it is poised to continue its impressive performance in the years to come.
[1] CNN Business
[2] Bloomberg
[3] Yahoo Finance
[4] Seeking Alpha
[5] The Wall Street Journal
- Block's inclusion in the S&P 500 signalizes its expanding role in the finance industry, particularly the digital payments sector, as it joins the prestigious index.
- The company's strategic investments in Bitcoin, such as adding it to its balance sheet, have played a significant part in its growth and reputation within the fintech industry.
- As Block continues to expand its suite of tools and services, including payment processing, digital wallets, and consumer loans, it is attracting interest from both investors and analysts in the stock-market.
- The fintech industry is closely following Block's move to accept Bitcoin as a payment method, as this could revolutionize the industry and further establish Block as a key player in the digital payments space.
