In partnership with

Today’s Headline

1 Magnificent Stock, 510% Gains Since IPO, Now in the S&P 500—and Analysts Say It’s a Buy (Block)

Hey friends,

I’ve been watching one stock that quietly became a major winner—and now it just earned a spot in the S&P 500. That’s Block, Inc., the company formerly known as Square. Since its IPO in 2015, Block’s stock has surged about 510%. Analysts like TD Cowen’s Bryan Bergin still rate it a “Buy” at a $115 price target.

Today, I’d like to share why this fintech giant has come so far, what its addition to the S&P 500 means, and why now may be a great time to consider it.

“You’re Already Late to AI — Unless You’re Reading This Daily Update”

Find out why 1M+ professionals read Superhuman AI daily.

In 2 years you will be working for AI

Or an AI will be working for you

Here's how you can future-proof yourself:

1. Join the Superhuman AI newsletter – read by 1M+ people at top companies

2. Master AI tools, tutorials, and news in just 3 minutes a day

3. Become 10X more productive using AI

Join 1,000,000+ pros at companies like Google, Meta, and Amazon that are using AI to get ahead.

Sign up and start learning AI

🚀 From Square to Block: A Quick Story of Growth

Block started as Square in 2009, making payment readers to help small businesses accept card payments. Over time, it expanded into payroll, cash advances, banking tools, and launched Cash App, which now counts tens of millions of users.

It rebranded to Block in 2021, signaling its broader ambitions—including a growing focus on bitcoin and blockchain.

Today it processes roughly $241 billion in annual payments volume, supports 4 million merchants, and boasts 57 million users globally. That scale, and consistent earnings growth, helped earn it its ticket into the S&P 500.

⚙️ Why Inclusion in the S&P 500 Matters

Being added to the S&P 500 is like getting a stamp of credibility. Index funds and ETFs that track the S&P will now automatically own Block. That boost in institutional demand can lift the stock—Block popped about 7% or more right after the news.

For investors like us, it means more visibility and potentially better liquidity. And while the short-term rally may fade, inclusion often happens when a company’s fundamentals are strong—so it matters for the long run too.

📈 What Helping Wall Street Says—and Why Analysts Still Buy It

Several major financial firms continue to call Block a “Buy”, even after its strong run.

• TD Cowen maintained its buy rating and $115 target—citing rising cash app use, growing payment volume, and earnings momentum.

• Jefferies raised its price target to $90, highlighting accelerating gross payment volume and renewed Cash App growth.

• Deutsche Bank also sees a reacceleration in Cash App metrics as a key growth driver in coming quarters.

So analysts believe Block still has room to grow—even after soaring 510% since IPO.

🔍 Why This Stock Shines: Key Growth Drivers

Block’s power comes from several interconnected strengths:

1. Fintech + Bitcoin: Block sits at the center of digital payments and crypto adoption. Its tools let sellers take digital payments, borrow, and support Bitcoin natively.

2. Cash App Momentum: The P2P payments app is seeing user and transaction growth rebound. That strategy is now fueling new revenue and engagement trends.

3. Payment Scale and Innovation: From POS systems to financing and banking, Block offers a full-stack business solution. Each new product deepens customer retention.

4. Proto & Bitkey: The company is building a Bitcoin hardware wallet (Bitkey) and rolling out its own mining hardware (Proto). These moves further position Block as a broader crypto platform.

5. Strong Profitability Metrics: In 2024, Block delivered $24 billion in revenue and $2.9 billion in net income—with margins climbing higher year by year.

⚠️ Risks Investors Should Know

No stock is perfect. Block faces some key headwinds:

• Regulatory scrutiny: As a fintech and crypto player, Block’s business could be affected by changing laws or crypto rules.

• Competition: Big rivals like PayPal, Stripe, Apple Cash, and Venmo are constantly innovating.

• Stock volatility: Despite gains, Block has seen sharp swings—its beta is high, so price movement is rarely gentle.

• Valuation questions: Its PEG ratio sits above 3, which can look lofty compared with past growth rates.

Still, these risks haven’t stopped Wall Street’s best from keeping their buy ratings intact.

🧠 What I’m Doing—and What You Might Do

Here's how I'm thinking through this:

• I’m building a core position gradually over time (so I don’t get whipsawed by volatility).

• I like Block's mix of fintech, payments scale, and crypto innovation.

• I'm watching upcoming earnings and growth in Cash App and payment volume closely.

• I’ll consider doubling down if block’s guidance continues upward and the S&P inclusion helps access new capital.

If you're long-term minded (3–5 years), Block seems to fit well in a growth or fintech portfolio.

✏️ My Advice to You

If you’re curious, here’s what to consider next:

✅ Do your own research—read Block’s earnings, understand the business segments.
✅ Start small if you're cautious—buy a bit now, maybe add later.
✅ Watch institutional trends—inflows post-inclusion may support a near-term boost.
✅ Balance risk—Block is tech-heavy and can swing; add stability elsewhere if needed (like dividend or value holdings).

Remember, growth means volatility—and long-term investors thrive by staying calm through the waves.

Final Takeaways

Block’s story—510% growth since IPO, now an official S&P 500 member, bullish analyst ratings, and multiple growth engines—makes it one stock worth watching closely.

At the same time, you want to respect the risk. Crypto, competition, and earnings cycles can surprise.

For me, Block fits as a centerpiece in a diversified fintech or growth portfolio—especially at this moment when momentum and index inclusion may propel it higher. If you believe digital payments and crypto are sticking around for the next decade, then long-term Block may be a smart move.

Thanks for reading. I’ll keep monitoring Block and share updates as they come.

Stay thoughtful, stay curious, and always invest with your long-term goals in mind.

— Your friend in finance

[Live Life Grow Wealth]

Recommendations Section

DISCLAIMER

I make no representations, warranties, or guarantees, whether expressed or implied, that the content provided is accurate, complete, or up-to-date. Past performance is not indicative nor a guarantee of future returns.

I am an individual content creator and not regulated or licensed by the Monetary Authority of Singapore (MAS) as I do not provide investment services.

All forms of investments carry risks, including the risk of losing your entire invested amount. Such activities may not be suitable for everyone. You are strongly encouraged to seek advice from a professional financial advisor if you have any doubts or concerns.