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Highlights
- The share price of Block Inc. was quoted 6.5% lower at 1:40 PM AEDT on the ASX today (10 November).
- It is likely that Block’s US equities, that closed 8.6% lower on NYSE on Wednesday (9 November), were weighing upon the Block's share price on the ASX today.
- US inflation figures are scheduled to be out today, that is expected to trigger further interest rate hikes from the US Fed.
Shares of BNPL player from the software and services sector, Block Inc. (ASX:SQ2), were spotted trading 6.5% lower at AU$89.670 apiece at 1:40 PM AEDT on the ASX on 10 November 2022.
During the past five trading days, the shares of the company have shed 6.43%, while in a month, they have edged up marginally by 0.75%. In the past six months, the shares of Block have lost 26.84% on the ASX, and in the previous year, the company lost almost 50% on the ASX (as of 1:37 AM AEDT, 10 November).
Around the same time, the ASX 200 Information Technology sector (INDEXASX:XIJ) was 1.583% lower to 1,386.6 points.
What is likely weighing upon the share price of Block?
The American multinational technology giant is dual listed on NYSE and ASX. Block shares finished 8.48% lower at US$57.21 per share on the NYSE on 9 November 2022. Investors and stocks onlookers are awaiting the inflation report scheduled to release today.
Why was Block in the news recently?
The BNPL giant shared its financial report for the 2022 third quarter on 4 November 2022 on the ASX. Block stated that it had generated a gross profit of US$1.57 billion, up 38% year-on-year. Block reported a 17% jump in total net revenue from the previous quarter to US$4.52 billion in September. Block’s cash app churned out 51% of gross profit, reaching US$774 million as compared to last year. Block’s EBITDA rose 40% to US$327 million year-on-year, and the company finished the quarter with US$7.1 billion in available liquidity and US$6.5 billion in cash and equivalents.
Block, in its release, stated that rapid and important changes in the technology continue to affect the industries in which the company operates.
