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Yahoo
14-06-2025
- Business
- Yahoo
Block vs. Upstart: Which Fintech Stock Has More Upside in 2025?
The fintech sector is evolving fast, driven by innovation in digital payments, credit underwriting, and user experience. Two major players — Block, Inc. XYZ and Upstart Holdings UPST — stand out for their disruptive business models and strategic growth initiatives. Block leans into a multi-vertical payments ecosystem through Square and Cash App, while Upstart is reinventing consumer lending using artificial intelligence. As both companies tackle economic headwinds and rising competition, investors are wondering which stock is better positioned for 2025. Below, we explore the merits and limitations of each to help identify the stronger long-term XYZ or UPST, which of these Fintech stocks has the greater upside potential? Let's explore. Block continues to grow its comprehensive fintech platform, with its Square and Cash App ecosystems offering end-to-end solutions across payments, commerce, and banking. The latest innovations like the Square Point of Sale app and the rollout of 'Cash App Afterpay' showcase its commitment to user-centric design and revenue diversification. Block's omnichannel seller tools are helping businesses streamline operations, and its FDIC-approved lending capabilities add depth to its offerings. Cash App is also targeting younger users and families, while the Proto division is eyeing new frontiers in Bitcoin mining hardware, potentially unlocking future growth these innovations, Block faces several headwinds. Macroeconomic uncertainty, including tariffs and weaker discretionary spending in categories like travel and media, is limiting Cash App Card activity. Its gross profit is forecasted to improve later in the year, but the near-term softness is noticeable. Additionally, the company is battling intense competition from PayPal, Shopify, and newer fintech upstarts. While Block has solid momentum and diversified revenue streams, its performance remains sensitive to shifts in consumer behavior and macro conditions, making 2025 a year that could be shaped more by external variables than internal progress. Upstart is gaining traction as a differentiated player in lending by replacing FICO scores with AI-driven credit modeling. Its underwriting engine, which automates 92% of loans, provides not only efficiency but also a better borrower experience. The company's strength lies in its expanding loan portfolio, which now includes auto loans, HELOCs, and small-dollar loans. These categories posted double-digit sequential growth in the first quarter of 2025, reinforcing the company's operational execution and technological AI engine is also evolving. Model 19 introduces payment transition modeling, enhancing its ability to predict borrower behavior. These model upgrades are driving stronger conversion rates, which have risen from 14% to 19% in just a year. Financially, Upstart reported a 67% revenue increase year over year and flipped to profitability with a 30-cent non-GAAP EPS in Q1 2025. Even more impressive is its growing reliance on super-prime borrowers, which reduces risk and improves funding consistency. However, challenges remain — elevated interest rates and a dip in contribution margins are notable — but Upstart's rapid vertical expansion, smarter underwriting, and visible operating leverage suggest a fintech stock on the cusp of durable scale. The Zacks Consensus Estimate for Block's 2025 sales and EPS implies year-over-year growth of 3.55% and a decline of 25.22%, respectively. EPS estimates for 2025 and 2026 have been southbound over the past 30 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)For Block: Image Source: Zacks Investment Research The Zacks Consensus Estimate for Upstart's 2025 sales implies year-over-year growth of 58.8%. What is also encouraging is that EPS estimates for 2025 have been trending northward over the past 60 Upstart: Image Source: Zacks Investment Research Year to date, Upstart shares have dropped 11.4%, which is less than the 24.9% decline in the shares of Block. XYZ and UPST Stock's Performance Image Source: Zacks Investment Research Despite the price plunge, XYZ is trading at a forward 12-month Price/Sales of 1.51X, ahead of its one-year median of 1.54X. Meanwhile, UPST is presently trading at a forward 12-month Price/Sales of 4.56X, at a premium to XYZ, but below its one-year median of 5.25X. XYZ and UPST Valuation Image Source: Zacks Investment Research While Block has a proven ecosystem and deep roots in payments, its near-term trajectory is hindered by soft consumer demand and intense competition. Upstart, on the other hand, is showing clearer operating leverage and expanding intelligently into new credit categories with improving AI and funding structures. With strong revenue momentum and rising profitability, Upstart emerges as the fintech with greater upside potential in 2025 for long-term investors seeking innovation-led Upstart has a Zacks Rank #3 (Hold), making the stock a stronger pick compared with Block, which has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Mayor
04-05-2025
- Business
- Business Mayor
Block shares plunge 18% as company takes 'cautious stance,' issues weak guidance for year
Block reported first-quarter results that missed Wall Street expectations on Thursday and issued a disappointing outlook. The stock tumbled 15% in extended trading. Here is how the company did, compared to analysts' consensus estimates from LSEG. Earnings per share: 56 cents adjusted. That figure may not be comparable to estimates. 56 cents adjusted. That figure may not be comparable to estimates. Revenue: $5.77 billion vs. $6.2 billion expected Revenue decreased about 3% from $5.96 billion a year earlier. Gross profit rose 9% to $2.29 billion from $2.09 billion a year earlier. That missed analysts' forecasts of $2.32 billion for the quarter. Block provided weaker-than-expected profit guidance for the second quarter and full year, reflecting challenging economic conditions. A growing number of tech companies are warning investors about the rest of the year following President Donald Trump's announcement of sweeping tariffs on imported goods last month. 'We recognize we are operating in a more dynamic macro environment, so we have reflected a more cautious stance on the macro outlook into our guidance for the rest of the year,' the company wrote in its quarterly report. The company expects gross profit in the second quarter of $2.45 billion and $9.96 billion for the full year. Analysts were expecting $2.54 billion and $10.2 billion, respectively, according to StreetAccount. In the first quarter, gross payment volume, or a measure of money moving through Square and Cash App, came in light at $56.8 billion, versus expectations of $58 billion, according to StreetAccount. Despite Cash App's broader push into financial services and lending, the segment's gross profit was a bit softer than expected. CFO Amrita Ahuja cited lower inflows and muted tax-season spending, but said the company expect a pickup later this year, in part because of the nationwide expansion of the Cash App Borrow program following approval by the Federal Deposit Insurance Corporation. While Wall Street is selling on the results, Ahuja said Block delivered its most profitable quarter ever, which she said is 'a reflection of the continued discipline across our business and the efficiency with which we operate.' Square faces the same risks as many others in the payments space due to its reliance on consumer spending. But international markets, now nearly 18% of its volume, remain a bright spot, and a recent survey of small and medium-sized businesses showed strong adoption and satisfaction, even as price sensitivity grows and tariff risks linger. Block, an early leader in point-of-sale systems for small businesses, faces growing competition from rivals like Toast and Fiserv 's Clover — though Square still gained share during the quarter in its target verticals including retail, as well as food and beverage. Cash App continues to push deeper into banking. This quarter marked the debut of Afterpay's buy now, pay later integration on the Cash App Card, part of Block's broader effort to expand credit access. With regulatory approval for Borrow, the company can effectively double the number of users eligible for the product, Ahuja said, while also improving unit economics by bringing loan servicing and origination fully in-house. Cash App gross profit was up 10% from a year earlier to $1.38 billion. Competition in peer-to-peer payments is heating up, after Venmo reported a 20% jump in revenue. Block CEO Jack Dorsey said Cash App is focused on offering more products, while at the same time still targeting additional users. 'We, of course, want to deepen engagement with our customers through banking services and Borrow — and I have no doubt we will,' Dorsey said on the earnings call. 'But at the same time, we need to make sure that we continuously grow our network, and that starts with peer-to-peer.' Analysts view lending as a key piece of monetization, alongside growing opportunities in merchant services and advertising. Morgan Stanley noted that about half of surveyed Square merchants now use Block's banking products. Block recorded bitcoin holdings of $2.3 billion at the end of the quarter. The company expects to deliver its first bitcoin mining chips with Proto in the second half of the year. Block shares are down 31% this year as of Thursday's close. — CNBC's Robert Hum contributed to this report. READ SOURCE
Yahoo
02-05-2025
- Business
- Yahoo
Block Shares Nosedive 20% After Q1 Miss, Cuts Full?Year Outlook
Block (NYSE:XYZ) shares plunged 20% on Friday morning trading after its Q1 results fell short of forecasts, driven by weaker?than?anticipated Cash App Card spending. Warning! GuruFocus has detected 8 Warning Sign with XYZ. The merchant?services and payments firm posted adjusted EPS of $0.56, below the $0.94 analysts' consensus and down from $0.71 in Q4 2024. Gross payment volume slid to $56.8 billion, missing the $57.9 billion street view and down from $62.0 billion in the prior quarter. Gross profit dipped to $2.29 billion versus expectations of $2.32 billion, though year?on?year it rose from $2.09 billion in Q1 2024. Cash App contributed $1.38 billion (up 10% Y/Y) and Square's segment added $898 million (up 9% Y/Y). Non?GAAP operating expenses climbed to $1.84 billion from $1.57 billion in Q4. Adjusted EBITDA reached $812.8 million, topping the $783.4 million estimate. Looking ahead, Block now sees Q2 gross profit of $2.45 billion versus a $2.54 billion consensus, and full?year 2025 gross profit of $9.96 billion (prior guidance: $10.22 billion; consensus: $10.18 billion). The company plans to broaden Cash App Borrow loans, refine product controls and boost high?ROI marketing to drive a rebound in the back half of the year. This article first appeared on GuruFocus. Sign in to access your portfolio
CNA
01-05-2025
- Business
- CNA
Block trims forecast as consumer spending slowdown fears mount, shares slump
Block cut its profit forecast for 2025 and missed estimates for quarterly earnings on Thursday as the payments firm grapples with muted consumer spending, sending its shares down 19 per cent in extended trading. President Donald Trump's trade policies have sparked concerns over consumer spending, which makes up more than two-thirds of U.S. economic activity, as well as fears of stagflation. "We are operating in a more dynamic macro environment, so we have reflected a more cautious stance on the macro outlook into our guidance for the rest of the year," the company said. The Jack Dorsey-led firm cut its forecast for 2025 gross profit growth to 12 per cent from 15 per cent, while projecting second-quarter gross profit at $2.45 billion, below Wall Street estimates of $2.54 billion. Its Cash App, which enables peer-to-peer mobile payments, reported gross profit growth of about 10 per cent in the first-quarter ended March 31, down from 25 per cent last year. "Non-discretionary Cash App Card spend in areas like grocery and gas was more resilient, while we saw a more pronounced impact to discretionary spending in areas like travel and media," Chief Financial Officer Amrita Ahuja said on a post-earnings call. Block also reported a 60 per cent drop in its first-quarter profit as it recorded a $93.4 million remeasurement loss on its bitcoin investments, compared to a $233.4 million similar gain in the year-ago period. On an adjusted basis, profit came in at 56 cents per share, well below analysts' expectations of 87 cents, according to data compiled by LSEG. Block facilitates bitcoin purchases on its platform by acquiring the cryptocurrency through private broker dealers and reselling it at a small premium. Bitcoin revenue fell 15.7 per cent to $2.30 billion in the quarter ended March 31, as a wider market downturn saw the cryptocurrency decline 12 per cent in the first quarter. The fintech reported transaction-based revenue of $1.55 billion, missing expectations of $1.59 billion.
Yahoo
04-03-2025
- Entertainment
- Yahoo
Sabrina Carpenter 2025 U.S. tour dates: How to get pre-sale tickets to the 'Short n' Sweet Tour' today
Sabrina Carpenter's Short n' Sweet tour is growing! The 'Busy Woman' singer is, well, going to be a busy woman with the 17 new dates added to her North American tour for her Grammy-winning album of the same name. The extended U.S. dates kick off on Oct. 23 in Pittsburgh, ending on Nov. 23 in Los Angeles. If you're in the New York area, you could even spend Halloween with Sabrina at MSG. This leg of the Short n' Sweet Tour will feature supporting artists Olivia Dean, Ravyn Lenae and Amber Mark. You can sign up for pre-sale ticket access now through Sabrina's official pre-sale and the exclusive Cash App Card pre-sale. General sale opens Friday, Mar. 7. The exclusive Cash App Card pre-sale begins Tuesday, Mar. 4 at 10 a.m. local venue time. Then, Sabrina Carpenter's official pre-sale for new Short n' Sweet Tour dates opens on Tuesday, Mar. 4, 2025, at 12 p.m. local venue time. Both pre-sales are open to sign up now. Sign up for Cash App pre-sale Sign up for official pre-sale General sale for the new Sabrina Carpenter concert dates will open Friday, Mar. 7, 2025 at 10 a.m. local venue time. Find tickets While we don't know yet what tickets for this leg of the tour will officially cost, Vivid Seats resellers have priced tickets for the opening night of this leg in Pittsburgh, PA starting at $319. StubHub has resale tickets for that same date starting at $317. Find tickets on Vivid Seats Find tickets on StubHub Oct. 23 Pittsburgh, PA @ PPG Paints Arena Oct. 24 Pittsburgh, PA @ PPG Paints Arena Oct. 26 New York, NY @ Madison Square Garden Oct. 28 New York, NY @ Madison Square Garden Oct. 29 New York, NY @ Madison Square Garden Oct. 31 New York, NY @ Madison Square Garden Nov. 1 New York, NY @ Madison Square Garden Nov. 4 Nashville, TN @ Bridgestone Arena Nov. 5 Nashville, TN @ Bridgestone Arena Nov. 10 Toronto, ON @ Scotiabank Arena Nov. 11 Toronto, ON @ Scotiabank Arena Nov. 16 Los Angeles, CA @ Arena Nov. 17 Los Angeles, CA @ Arena Nov. 19 Los Angeles, CA @ Arena Nov. 20 Los Angeles, CA @ Arena Nov. 22 Los Angeles, CA @ Arena Nov. 23 Los Angeles, CA @ Arena Sign up for Cash App pre-sale Sign up for official pre-sale
