Why is Block share price dropping?
Investor distaste for high-tech growth stocks like Block at the prospect of higher interest rates, combined with projected slowdowns at competitors like PayPal Holdings Inc., contributed to a nearly 60% drop in the Block's share price since August.Feb 25, 2022
Is Block a good stock to buy?
Block stock has struggled so far this year, but analysts at Truist still think it is worth buying. Shares of the company are down nearly 16% year to date and 36% the past 12 months amid concerns about interest-rate increases, plus potential increased regulatory oversight of cryptocurrencies.Mar 25, 2022
Why does a stock suddenly drop?
Faulty Numbers. Sometimes, there is a fundamental reason for a stock to fall after earnings are announced. For example, perhaps the company's gross margins have fallen dramatically from last quarter, or maybe its cash position has dwindled dramatically.
What to do if a stock keeps dropping?
If you're going to invest in stocks, you need to have a plan for when your stock's price falls.Revisit Your Investment Plan. Your stock's price will likely rise and fall to some degree during every market cycle, sometimes within a few moments. ... Buy More Shares. ... Take Your Losses. ... Re-Balance Your Portfolio.
Is Square a buy right now?
According to TipRanks' consensus analyst rating, SQ stock comes in as a Buy. Out of 22 analyst ratings, there are 16 Buy recommendations and 6 Hold recommendations.Jan 2, 2022
Will Square go up?
Growth is slowing down. That's clear from looking at its most recent earnings report. Looking into 2022, analyst consensus calls for the company's top line to rise just 7.8%, versus revenue growth of 85.7% in 2021. Estimates also calls for earnings growth to slow down as well.Dec 9, 2021
Do I owe money if my stock goes down?
The price of a stock can fall to zero, but you would never lose more than you invested. Although losing your entire investment is painful, your obligation ends there. You will not owe money if a stock declines in value.Mar 8, 2022
How do you predict if a stock will go up or down?
If the price of a share is increasing with higher than normal volume, it indicates investors support the rally and that the stock would continue to move upwards. However, a falling price trend with big volume signals a likely downward trend. A high trading volume can also indicate a reversal of trend.Dec 6, 2011
What causes spikes in stocks?
The reason for the higher share price is an increase in the number of people looking to buy this stock. This difference between the supply and demand of a stock causes the share price to rise until an equilibrium is reached. Remember that in this case, more people are looking to buy shares than sell them.
When should I sell a losing stock?
Generally though, if the stock breaks a technical marker or the company is not performing well, it is better to sell at a small loss than to let the position tie up your money and potentially fall even further.
Can you sell a stock if there are no buyers?
When there are no buyers, you can't sell your shares—you'll be stuck with them until there is some buying interest from other investors. A buyer could pop in a few seconds, or it could take minutes, days, or even weeks in the case of very thinly traded stocks.
When should you dump a stock?
One of the best reasons to sell a stock is when the stock is fairly priced or overpriced by the market. “Buy low, sell high” is easier said than done, of course.
The payments company's shares are getting caught in a sector-wide downdraft
Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.
What happened
Shares of Block ( NYSE:SQ) sank in morning trading Thursday as the point-of-sale device maker formerly known as Square continued to feel the aftershocks of PayPal 's ( NASDAQ:PYPL) distressing fourth-quarter earnings report, which sent the entire payments sector into a tailspin on Wednesday.
So what
Whatever the long-term prospects are for growth in the payments space -- and they are considerable -- PayPal's fourth-quarter results and weak guidance sent a shudder through the industry because they could portend a dramatic slowdown coming.
Now what
Block's stock has been on a downslope since well before PayPal's earnings report, as the market has been rotating away from previously high-flying tech shares and into consumer durables names. Block is down by 63% from the high it touched in August, and is off 35% year to date in 2022.
What happened
Shares of fintech giant Block ( SQ 26.14% ) -- the artist formerly known as Square -- dipped this morning and were trading down 2.5% as of 9:50 a.m. ET.
So what
Taking aim at the BNPL sector of the fintech market, Mizuho cut its price targets on PayPal, Affirm , and Block. As the analyst explained in a note covered by StreetInsider.com today, "Our research uncovers several potential risks [to BNPL stocks] that we believe are not fully understood."
Now what
All that being said, there's no need for Block investors to panic just yet. While the analyst cut price targets across the board (on Block most of all), it's worth pointing out that at a $285 target, Mizuho still thinks Block stock retains significant upside.
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What happened
The stock market was having a pretty flat day on Monday, with the Dow Jones Industrial Average and S&P 500 slightly in positive territory and the Nasdaq slightly lower with a half hour to go in the trading session.
So what
There isn't much company-specific news behind the move. A regulatory filing showed CFO Amrita Ahuja sold just over 3,600 shares of the stock on Feb. 2 (about $460,000 worth), but this was an automatic sale to fulfill tax obligations, not a personal decision.
NYSE: SQ
Rather, today's move seems to be fueled by general negativity and pessimism in the payments and fintech space. Other financial disruptors like PayPal ( PYPL -1.47% ) and e-commerce disruptor Shopify ( SHOP -0.47% ) were underperforming the market as well.
Now what
While today's move doesn't appear news-related, Block has had some negative catalysts recently while its stock has been falling. It closed on the acquisition of buy-now-pay-later company Afterpay, which investors don't appear to be sold on, and PayPal's disappointing earnings report sent shockwaves through the entire payments industry.
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What happened
Shares of Block (NYSE: SQ) sank in morning trading Thursday as the point-of-sale device maker formerly known as Square continued to feel the aftershocks of PayPal 's (NASDAQ: PYPL) distressing fourth-quarter earnings report, which sent the entire payments sector into a tailspin on Wednesday.
So what
Whatever the long-term prospects are for growth in the payments space -- and they are considerable -- PayPal's fourth-quarter results and weak guidance sent a shudder through the industry because they could portend a dramatic slowdown coming.
Now what
Block's stock has been on a downslope since well before PayPal's earnings report, as the market has been rotating away from previously high-flying tech shares and into consumer durables names. Block is down by 63% from the high it touched in August, and is off 35% year to date in 2022.
What happened
Shares of Block (NYSE: SQ), a financial technology company, were sliding today, likely on news of rising tensions between Ukraine and Russia.
So what
Investors have grown increasingly concerned about a potential conflict in Europe after Russian President Vladimir Putin formally acknowledged rebel-held regions in Ukraine. Putin has ordered Russian troops in the regions, which has spurred the U.S. and E.U. into saying that they will issue sanctions against the two breakaway regions.
Now what
Investors may want to brace for more volatility from Block's share price. In addition to macroeconomic events, the company will report its fourth-quarter 2021 financial results on Feb. 24.
NYSE: FSLY
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What happened
After Tuesday began with many tech stocks performing well, most of them turned to losses later in the day.
So what
The pullback in many tech stocks on Tuesday is evidenced by the tech-heavy Nasdaq Composite 's 0.4% decline as of this writing -- even as the Dow rose more than 0.3%.
NYSE: FSLY
Tech stocks are probably simply taking a breather after some upbeat trading days recently. Consider that the Nasdaq is up more than 5% over the past five trading days, even when including the index's loss today.
Now what
A large portion of the tech stocks that have weighed on the sector are growth tech stocks, or companies with rapidly growing revenue. Fastly, Teladoc, and Block are all good examples. The three growth tech stocks are down 58%, 54%, and 25%, year to date.
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