Block Inc SQ is set to report its third-quarter earnings on Thursday. Analysts predict earnings per share (EPS) will hit 87 cents, along with revenues of $6.24 billion when the company releases its report after market hours.
Over the past year, Block’s stock has risen by 52.09% and 7.5% year-to-date. As Block approaches its third-quarter earnings, recent stock activity may influence investor sentiment.
Cathie Wood‘s Ark Invest recently divested 31,771 shares from the Bitcoin BTC/USD-focused Block for about $2.5 million. This transaction occurred through both the ARK Innovation ETF ARKK and the ARK Fintech Innovation ETF ARKF.
At the same time, CEO Jack Dorsey announced job cuts at Tidal, Block’s music streaming service. The goal is to streamline operations by creating a more agile team. These developments highlight Block’s commitment to cost management as it gears up for its earnings report.
Next, we will examine the technical indicators surrounding Block’s stock and its alignment with Wall Street’s projections.
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Block Stock Continues Its Strong Run: But Is It Overheated?
The performance of Block stock reflects a robust bullish trend. As of the latest trading session, shares are priced at $78.80, well above key moving averages, which indicates ongoing buyer interest.
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With the five, 20, and 50-day exponential moving averages all positioned below the current stock price, momentum indicates a continuation of bullish trends. The eight-day and 20-day simple moving averages, sitting at $74.06 and $73.26 respectively, also suggest short-term buying strength.
Moreover, support levels are strengthened by a 50-day Simple Moving Average (SMA) at $68.77 and a 200-day SMA at $69.41. This provides further validation for investors leaning towards a bullish outlook.
The Moving Average Convergence Divergence (MACD) indicator stands at a favorable 1.95, reinforcing this optimistic view. However, Block’s Relative Strength Index (RSI) is currently at 72.05, indicating that the stock may be overbought and signaling a possible temporary pullback.
Investors should closely monitor whether Block can maintain its upward buying momentum or if the RSI suggests it’s time for a cooldown.
Analysts Forecast Further Growth
Block Ratings & Consensus Estimates: Analysts collectively rate Block stock as a Buy, with an average price target of $86.49. Recent evaluations from firms like RBC Capital, BMO Capital, and New Street Research suggest a potential upside of 5.49%, leading to an average target of $83.33.
SQ Price Action: Block shares ended the trading day on Wednesday at $77.64, marking an increase of 7.27%.
Further Reading:
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