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Highlights
- On Thursday, Block shares traded 3.916% lower at AU$186.750 per share on ASX at 12:06 PM AEDT.
- High inflation, Russia–Ukraine war and high-interest rates have had an impact on the performance of tech stocks lately.
The shares of Block Inc (ASX:SQ2) traded in red on Thursday (31 March 2022) though there was no price sensitive update by the company today. On Thursday, Block shares traded 3.916% lower at AU$186.750 per share on ASX at 12:06 PM AEDT. The stock had hit its 52-week high on 21 March 2022.
Meanwhile, the S&P/ASX 200 Information Technology Index (ASX:XIJ) is down 1.928% at 1842.300 points. Block Inc. is an ASX-listed technology company that provides financial services.
In the past one-year, Block shares have gained 5.73%, while the stock is 5.73% year-to-date (YTD). The stock’s performance has fared better than the benchmark index, as the S&P/ASX 200 Information Technology Index has declined almost 5% over the last one year.
The S&P/ASX 200 (ASX:XJO) was up 0.433% at 7547.100 points at 10:55 AM AEDT.
It is to be noted that there is no exact answer as to why the ASX-listed tech is bearing the brunt of today’s sell-off? One possible answer for the weak performance of Block shares could be that investors are showing a preference for risk-free stocks. This is partly due to record high inflation, the Russia– Ukraine war, and high-interest rates.
Meanwhile, the share price of PayPal (PYPL), Marqueta (MQ), and other payment firms dropped Wednesday after there were reports that the American technology company Apple (AAPL) Is working on an anointed “Breakout” plan to get the financial services in-house.
As per reports, the tech giant is planning to create a payment processing technology and infrastructure to decrease its reliance on outside partners. The strategy is aimed at future financial products instead of the current ones.
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How are other fintech companies performing today?
Financial technology companies have been volatile due to higher interest rates and growing inflation over the past few months.
Image Source: © Joebite| Megapixl.com
The shares of companies such as Zip Co Ltd (ASX:Z1P) shares, EML Payments Ltd (ASX:EML), Appen Limited (ASX:APX), and Megaport Ltd (ASX:MP1) are trading in red today.
During the intraday trading session, Zip shares were spotted trading 2.281% lower at AU$1.500, Appen shares were down 3.073% at AU$6.940, while the share price of EML Payments, and Megaport Ltd was down 1.171% and 0.567% respectively.
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