Block stock price forecast: Moon or Doom?

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Block stock price forecast is bullish, according to analysts. They agree that 2024 would be favorable for fintech growth. However, fintech stock hasn’t performed well after Covid-19. So, stock investors have many questions regarding the Block stock forecast.

Prominent analysts, including Cathie Wood, are optimistic about the stock price of the Block. None of them suggest a below $100 Block stock price. Is block a good stock to buy?

As a stock investor, the above quarries are typical. So, you are here to know whether Block stock would be good enough to be a part of your portfolio. Am I correct?

Don’t worry; this blog article will guide you through every factor associated with Block stock price. Perhaps you will learn something unique today that will also help you invest in other fintech stocks.

Let’s start with the following.

Key takeaways:

  • Financial data of Block stock doesn’t assure high-performing stock.
  • Block Inc. suffers badly from its long-term debt, which could impact stock price.
  • The stable management of Block Inc. suggests enough potential to grow in the upcoming years.
  • Block Inc. must upgrade digital service to lower competitor’s influence. 
  • Fintech trends suggest Block would be a medium-growth stock.
  • The Block stock promoters seem dedicated to long-term growth, which is suitable for investors.

Block EPS earnings history?

Block EPS earnings history doesn’t suggest promising growth. The earnings per share of Block declined steadily but mostly affected in 2022 & 2023. This falling EPS indicates Block’s poor performance against recession. Rising inflation & interest hikes create an imbalance between sales & expenses. So, Block Inc. must fix this cost imbalance. 

Block eps

2022 is a negative trend, but 2023 indicates some coverage from falling. So, Block Inc. has taken enough steps to expand its core business and plans to go beyond the market. This extension is a vital signal for stock investment. But -0.18 doesn’t seem easy to recover for Block Inc. within a short time, so we can’t predict how much their management will be able to do it. 

Therefore, based on past Block EPS data, my prediction would be a medium-growth stock.     

Block PE ratio?

The Block price-to-earnings ratio indicates a historical move from 2019 to 2020. Block earns huge cash from selling financial services & customers pay more money for it. That means the pandemic doesn’t wholly stop Block from earning revenue; instead, it is a macroeconomic risk. The world is badly affected by rising living costs, inflation, geopolitical tension, & high-interest rates. 

P/E Ratio (TTM)Years
Block PE ratio

Block earns money by providing payment services. If per financial processing transaction expense exceeds earned commission, then it is usual to drop the price-to-earnings ratio. A lower P/E ratio indicates that the company is not overvalued, but a negative suggests continuous loss from business. The P/E ratio of Block doesn’t follow the standard value below 15; instead, it fluctuates highly, which signals stock investment risk.  

But this doesn’t prove that Block stock is going to crash. Usually, for technology & pharmaceuticals, a poor P/E ratio doesn’t show the company’s weak performance; instead, it indicates their huge cash investment in different projects. So, anything could be possible, so my prediction on Block stock would be neutral.   

PS ratio?

Initially, the Block Inc. P/S ratio shows promising sales. Block Inc. stock was more undervalued in 2019 than its competitors (PayPal, Global Payments), which means rising sales with lower prices. Global Payments shows more stable sales growth than PayPal & Block Inc. from 2020 to 2022.

P/S Ratio (TTM)Years
Block PS ratio  
P/S Ratio (TTM)Years
PayPal P/S Ratio
P/S Ratio (TTM)Years
Global Payments P/S Ratio

Regarding the price for sales, Block Inc. seems weaker than its competitor, Global Payments. Block Inc. must fix its P/S ratio because a higher P/S ratio also signals a potential stock crash.

Block Inc. may suffer from higher operating costs, or its competitors provide the same service at lower prices. So, Block Inc. must upgrade its service & sales.

Block perhaps focuses on their sales by lowering the overvaluation of stocks because we can see a significant P/S ratio drop from previous years. Block makes its stock affordable for all types of investors to increase customer confidence, which indirectly pushes Block’s stock growth. Block reached a lower P/S ratio than its peer competitors in 2023, which shows its strong leadership commitment.

So, my prediction on Block stock would be a medium growth stock.

Block ratio?

Usually, a return on equity between 15 to 20% is considered suitable for stock investment. The Block Inc. return on equity ratio doesn’t fall below that range, which is better for stock investors. It signals Block Inc.’s strong profitability related to shareholder equity. 

However, the fluctuation of return on equity also suggests some abnormal situations for the company. Block Inc. needs to adopt the applicable business model or an existing business strategy that needs to be fixed. 

Return on equity ratio (%)2522.43841.627.1
Debt-to-Capital Ratio (%)25.926.427.328.138.2
Operating Margin ratio (%)3332.232.833.629.1
Enterprise Value to EBIT40.142.745.749.353.6
Interest Coverage Ratio13.212.511.8117.1
PEG Ratio1.
Acid test ratio21.
Block ratio

The Debt-to-Capital Ratio of Block Inc. is not favorable for stock growth. It indicates higher borrowing than equity, which is not better for the company. Block Inc. must reduce it & we can see some decline over time, which is good. Another point is that tech companies loan vast amounts of cash for multi-investment, which could benefit long-term prospects. Block Inc. is suffering for revenue & they are forced into debt to maintain operating expenses.   

The operating margin ratio of Block Inc. is above the standard value of 15%, which shows their cash capability to meet operational costs. This rising operating margin ratio suggests the possibility of future growth for Block Inc. 

Enterprise Value to EBIT ratio indicates overvaluation of Block Inc. Usually, an Enterprise Value to EBIT ratio of 10 is considered healthy, but above 40 signals a potential stock crash if these trends continue for a long time. We can see a gradual decline over five years, but it must indicate potential stock growth.

Interest Coverage Ratio up to 3 is considered standard for tech companies. Block Inc.’s interest on debt has seemed gradually higher over the five years, which shows weak sales. Block Inc. must reduce its debt & increase revenue to bring financial solvency. 

The PEG Ratio indicates the overvaluation of Block stock. That means a significant gap between fair value & current price of Block stock. Though Block Inc. lowered its PEG ratio over the five years, it still doesn’t fall to a standard below 1. So, Block Inc. must reduce the PEG ratio to minimize overvaluation risk.  

The acid test ratio of Block Inc. suggests the financial capability to pay quick liabilities from quick assets, which is suitable for Block stock. It started with an above standard value of 1:1 & and, after five years, doubled, i.e., liquid assets become double against quick liability.  

Overall, historical ratio data shows a mixed signal for Block stock growth. Therefore, my prediction would be neutral, as the past doesn’t assure future growth.  

Statement of cashflow?

The net cash from operating Block Inc. has had a positive trend over the five years. It signals the demand for their core business & if they fail to expand the market, there is little chance of being bankrupt.  

The long-term investment (Capital Expenditures) of Block Inc. significantly rose over the five years, which also signaled their cash deficit. If the project succeeds, Block Inc. can recover Capital Expenditures & ultimately become a financially strong company. 

Heads2023 (million$)2022 (million$)2021 (million$)2020 (million$)2019 (million$)
Net Cash from Operating5128501,229723577
Capital Expenditures-473-490-326-170-139
Free Cash Flow39360903553438
Cash and Short-Term Investments6,8466,2665,3323,8831,578
Statement of cashflow

If Capital Expenditures increase, then free cash flow will reduce & it is natural. In the short term, Block Inc. will face a liquidity crisis, but in the long time, Block Inc. will recover it. As a result, Block Inc.’s debt ratio increased. 

Though free cash flow declined, Block Inc.’s cash and short-term investments seem promising. Block Inc. raises enough money from short-term investments to help them make future market expansion.  My forecast on Block stock would be neutral again.

Block Inc balance sheet?

Block Inc.’s balance sheet shows a positive trend over the five years but doesn’t overcome initial assets. So, positive trends but zero growth. Zero growth happens when a company increases intangible assets more than physical assets. Like assets, Block Inc. increased some probable liability in the long term, which could slow stock growth. 

Heads2023 (million$)2022 (million$)2021 (million$)2020 (million$)2019 (million$)
Total Assets14,13012,93310,32012,93314,130
Total Liabilities & Equity14,13012,93310,3207,2545,053
Total Liabilities7,8557,3096,1024,3723,475
Total Shareholders’ Equity6,2755,6244,2182,8821,578
Block Inc balance sheet

However, 2019 & 2020 do not meet the accounting equation, i.e., A=L + OE. So, Block Inc. may be shown some fictitious accounting entries to produce a third-party audit report. Later, they have a balanced accounting equation, but more is needed to ensure a solid financial position.

My forecast based on the balance sheet would be neutral here. 

Stock price of block?

Block Inc. significantly rose from mid-2020 to the closing of 2022 & then started to fall. The Pandemic impacted Block Inc.’s stock price less than other macroeconomic factors. The price history suggests excessive operating costs & minimum revenue for the provided service. 

Block Inc. is a technology-based finance company that specializes in online payments. So, their main income comes from the commission received. Then, Block Inc. has only the US market, which limits its revenue. Competitors are another factor that stops Block Inc.’s market confidence. 

block stock price

A stable economy, i.e., a lower interest rate, could be a positive factor for Block Inc. stock. Can we expect less inflation in 2024? Difficult to predict. 

Energy doesn’t directly relate to Block stock price but will worsen macroeconomic factors. 

Recent geopolitical tension in the Middle East can create an energy crisis. Can we expect a short solution? I don’t think so. Energy is the backbone of any economy & it impacts every sector. Due to high energy costs, the companies will charge higher prices for their product & lay off employees to reduce operating expenses. Daily, you will see a news headline about layoffs in every industry, i.e., tech, manufacturing, finance or service. 

If most people become jobless or incomeless, they will mainly focus on basic needs. Will they charge a high price for Block Inc. financial services? I don’t think so. 

If you notice the ending time of 2023, you will see a rising line for Block Inc. stock price. This upward line indicates that Block Inc. may try hard to overcome the above challenges by lowering operating expenses. So, Block Inc. has good management who can bring positive stock growth. But how much price will rise? Can we expect 100x ROI? Hard to predict. 

In summary, no company can fully control macroeconomic risks, so Block Inc. has 50% controlling factors & the rest of the 50% will depend on overall economic conditions. Can we expect Block stock to outperform based on the above factors? No, Block stock could be a medium-growth stock.       

Stock promoters?

Promoters of Block Inc. subsidiaries include Initial Investors & executive management team. These subsidiary promoters have invested in Block stock. Block Inc. doesn’t disclose any updates on supporters, so we can’t predict whether the existing numbers will increase. 

So, based on the existing promoters, we need to find public statements on whether they sell their stock. Also, how often do these subsidiaries withdraw funds & when will they sell their stock?

Stock promoters

However, promoters have a positive relation with the stock price. If they quickly sell their stock, Block will lose investors’ confidence & stock will face huge fluctuation within a short time. 

Block Inc. is led by Jack Dorsey, who has a proven success record. So, he must ensure that no promoters sell their stock for quick dividends. 

Can you remember the Pepe coin? Pepe the Frog, a meme coin, surged to record break levels, but some promoters sold their share for quick profit & Pepe became dead. 

If this type of incident occurs to Block stock, it would be challenging to be profitable. Block Inc. doesn’t have such an announcement. Therefore, my prediction on Block stock would be neutral.    

Block Inc market cap?

I have analyzed the Block market with competitors. Fintech provides different types of financial services. So, sector analysis will give a more accurate picture of the Block market cap.

  • Payment service market
Competitors2020 (%)2021 (%)2022 (%)2023 (%)2024 (%) -Estimated
Global Payments4.14.44.75+5
Payment service market

Block shows positive growth over time in the financial payment service sector. It shows about 33% growth potential after five years. This slower growth suggests Block’s struggle to expand to a new market. 

On the other hand, PayPal, the leading payment service provider, dominates the market by double pace. PayPal is showing some fluctuating patterns but, overall, a positive trend

Stripe, PayPal’s closest competitor, shows an upward trend with 62.5% growth over five years. Stripe may be trying to enter a new market & they are capturing more markets than Block & PayPal. 

PayPal has more trustable customers than Block. So, becoming a giant service provider will not be easy for Block. 

Can Block beat Stripe? The historical market cap data doesn’t suggest that, but if Block focuses beyond his existing geography market & focuses on more acquisition, then it could be possible.

In summary, Block stock would be a medium-growth stock, i.e., there is little chance of giving you 100x stock return. 

  • Financial service market
Competitors2020 (%)2021 (%)2022 (%)2023 (%)2024 (%) -Estimated
Global Payments4.14.44.75+5
Financial service market

Block has grown its financial market by about 100% over five years & it indicates more expansion in the upcoming time. Block gains customer confidence over time, indirectly suggesting probable stock growth. 

But Block has to overcome two big competitors: Klarna & Global Payments. Klarna has grown its financial market by more than 105%, indicating further expansion. 

Conversely, Global Payments shows 21% growth, comparatively less than Block & Klarna. This more negligible growth doesn’t dictate less dominance but rather a significant portion of the market because Global Payment already has triple the market share of Block & Klarna.  

So, it seems reasonable that Block could beat Klarna, but defeating Global Payments or becoming equivalent would be very challenging. Therefore, we could expect that Block would be a medium-growth stock.  

  • Bitcoin Market
Competitors2020 (%)2021 (%)2022 (%)2023 (%)2024 (%) -Estimated
Bitcoin Market

Bitcoin is a trust market. Binance has long-term reliability for fast, secure & reliable digital payment. But, geopolitical tension between China & USA destroys Binance significantly. Gradually, Binance lost the Bitcoin market due to the SEC’s strict regulation & it doesn’t seem to recover shortly. 

The recent SEC regulations need to be more favorable for other crypto platforms. But, competition for the Bitcoin ETF spot indicates future growth for digital currency. 

Block Inc. has an expert management team, including Jack Dorsey, the ex-twitter CEO, which signals dedicated motives for potential growth. A stable management team play a crucial role in the Crypto industry, where internal conflict among management could crash growth potential. 

However, historical data indicate Coinbase leads the market & Kraken also grows its market with some fluctuation. The noticeable part of Block is that its Bitcoin market continually grows faster than other platforms. Block started with a small Bitcoin market but, after five years, grew 500%, which is a good signal for Block stock. It is also suggested that Block has some talents who can expand the crypto market.

Therefore, investing in block stock also means investing in Bitcoin. Fintech is a down industry now but expected a significant boom in the next three years.

Bitcoin experts also predict a significant boom after fixing US security regulations. If these two incidents become true, then there is a greater chance for Block stock to outperform. 

  • Cash App market
Competitors2020 (%)2021 (%)2022 (%)2023 (%)2024 (%) -Estimated
Cash App market

Block is a dominating market figure in the cash app segment. Block sequentially increases market portion over time & finally grows 80% market cap. Block has only two competitors, which indicates lower market geography. Lower geography means performing in a limited area or only in the home country. 

If a market has enough trends to grow, then Block will face some other competitors, such as start-ups. We don’t see a similar type start-up craze in the USA now, which means fintech has a negative trend. Considering only domestic cash app customers, i.e., Americans, it still indicates a positive sign for Block stock

However, fintech has the potential to trend in the upcoming years because people’s reliability on technology is gradually increasing. So, Block has some possibility to be a highly profitable stock.      

Fintech startups data?

Fintech start-up data shows continue to rise over the years. Maximum fintech grows in the USA, but Asia Pacific, Europe, & Middle East also are growing. Fintech companies are growing about double in America, where Asia Pacific is closer to tripling &, and Europe and the Middle East see triple growth. 

fintech startups data

Statistical data suggest growing growth, but we couldn’t assume similar demand. There are some reasons for that.


Inflation negatively impacts fintech & we are still facing it. Inflation will force banks & financial regulatory bodies to increase interest rates. So, profit for depositors will be less than interest expense & ultimately, it will crash the fintech industry. 

You can consider the Silicon Valley bank collapse incident and how liquid money shortage & loan facility crashed it. So, a stable economy is needed for positive growth of the fintech industry. 

Existing payment technology

Fintech companies must consider the global market with upgraded technology. They have to provide fast service with security & also lower operating expenses. They have to find some regions with demand but need more fintech.  

So, Block Inc. must think about digital payment services if they want to capture fintech trends. The above two factors are barriers as well as opportunities for new companies. If Block makes enough strategic plans to find benefits, then Block would be an excellent performing stock.

Block stock price forecast?

Analysts are bullish on Block’s stock price & suggest a buy stock. They are optimistic about positive market growth & believe fintech will be a trending industry in the upcoming years. 

A study conducted by Boston Consulting also indicates that fintech would be a $1.5 trillion industry at the end of 2030. 

This research finds that people spend more money on fintech services & this trend is continuously rising. Many people adopted fintech service during Covid as an alternative easy banking system. They prefer an easy banking solution that is only possible with technology. 

Another study conducted by Boston Consulting suggests that fintech is the future of banking

The study finds that fintech has a huge opportunity to upgrade the banking system. You can consider India’s UPI technology for easy financial transactions. Last two years, UPI was only limited to India, but now it is going to be a global payment system. 

Therefore, Latin America & Africa could be the next fintech markets like India. I partially agree with analysts’ prediction for block stock prices. 

Price ($)Key factorsAnalystsYears
135InflationGoldman Sachs2024
180Cash app trendsMorgan Stanley2025
250Cash App & cryptoCitigroup2026
250New market expansionBarclays2027
300Cash App & cryptoCitigroup2028
300BNPL trendsUBS2029
300Bitcoin integrationARK Invest2030
Block stock forecast

It is true that fintech has good trends but this is not a technology era rather we are just entering in an AI age. Companies will capture major market who will integrate artificial intelligence. There will be four parameters: Fast, reliable, easy & cost-effective. These four parameters also applicable for digital assets platform.    

Do any analysts emphasize on AI i.e., these four parameters? No. Will block stock implement it? There is no official announcement from Block without bitcoin ecosystem.

Block stock in 5 years?

So, how much Block stock can grow in the long-term. Let’s understand it from the following mathematical scenario.

Maximum probability of risk=4 (lack of four parameters)

High risk= 3 (due to bitcoin ecosystem)

Medium= 2 (AI integration)

Low=1(implementing four parameters) 

Risk score % (medium)= Probability × high risk

                                    = 4 × 3

                                    = 12

Favorable score % (medium) = 100 – 12

                                               = 88

Risk score % (maximum) = 4!

                                        =4 × 3 × 2 × 1


Favorable score % (minimum) = 100 – 24

                                                 = 76

Risk score (minimum)= Probability × average of 3, 2 & 1

                                    = 4 × 2


Favorable score % (maximum) = 100 – 8

                                                  = 92

So, minimum price down projection for Block stock = Current price – Current price × minimum risk score

                                                                                  =$80 – $80×8%

                                                                                  = $80 – 6.4

                                                                                  = $73.6

Medium price down projection for Block stock = Current price – Current price × medium risk score

                                                                                  =$80 – $80×12%

                                                                                  = $80 – 9.6

                                                                                  = $ 70.4

Maximum price down projection for Block stock = Current price – Current price × maximum risk score

                                                                              =$80 – $80×24%

                                                                               = $80 – 19.2

                                                                               = $60.8

Maximum price projection for Block stock = Current price + Current price × Favorable score

                                                                              =$80 + $80×92%

                                                                               = $80 + $73.6

                                                                               = $153.6

Medium price projection for Block stock = Current price + Current price × Favorable score

                                                                              =$80 + $80×88%

                                                                               = $80 + $70.4

                                                                               = $150.4

Minimum price projection for Block stock = Current price + Current price × Favorable score

                                                                              =$80 + $80×76%

                                                                               = $80 + $60.8

                                                                               = $140.8

Concluding Thought

Block stock has some potential to grow in the upcoming times. The financial performance of Block Inc. doesn’t assure a high-performing share, but it signals an inevitable growth. 

However, Block stock has zero internal management conflict, good leadership, probable customer growth & overall growing demand for the fintech industry in the upcoming years. It has also suffered from growing inflation & less external funding, which could be a barrier for Block stock. 

In short, Block stock has 50% negative & 50% positive growth factors, which suggests a medium growth stock. If Block wants to be a high-performing stock like Nvidia, it must improve sales, acquisition, core products & also have to lower operating expenses, which doesn’t seem easy.  

Frequently Asked Questions (FAQ)

Block stock splits history?

Block Inc. never split its stock & there is no official announcement to do that. Block Inc. is a young company that was established in 2009. Block Inc. mainly provides financial payment services within the US. Usually, a company splits its stock to reduce overvaluation, i.e., if it becomes too pricy, it breaks the share to increase shareholder numbers.

Block stock dividend?

Block Inc. does not pay dividends to its stockholders, even with no official announcement for the future. Usually, a growing company reinvests its profit to expand its market presence & Block does the same thing. 

However, it doesn’t mean that Block Inc. will never pay dividends. Dividend payment decisions depend entirely on management & any time it can change. 

Is block a good stock to buy?

Yes. Block is an excellent stock to buy. Block has enough growth potential in 2024 & it can give you a maximum 70% return on its intrinsic price. If you are looking for mid-term profit, Block stock would definitely be a better portfolio. 

Is block a good stock to buy

There are some reasons behind it.

1. Fintech has enough growth potential in the upcoming years. 

2. Block Inc. integrates with digital assets such as bitcoin. According to crypto experts, 2024 is going to be insane for crypto. That means the possibility of earning good dividends from Block stock

3. Block stock is a hybrid investment, i.e., a combination of fintech & Bitcoin. So, investing in block stock also means investing in crypto.

4. Many developing nations focus on fintech for payment services. So, there is a growing demand for Block Inc.’s core business in the USA and developing county. 


The information provided in this article is author’s view & only for educational purposes. Also, the intention of this article is not hurting any stock analyst. This is not a sponsor post & not an investment advice. Do your research before making any important financial decision. Therefore, will not be liable for your financial loss.

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