SQ Stock Falls as Bitcoin Weighs on Block
Stock in Block (NYSE: SQ ), formerly known as Square, fell 6% overnight despite earnings beating analyst estimates . The company reported a loss of $208 million, or 36 cents per share, on revenue of $4.4 billion. The problem was Bitcoin ( BTC-USD ). Block CEO Jack Dorsey has been a big advocate for cryptocurrency, actively trading through the company’s Cash App. Its spread from Bitcoin trading fell 24% to $41 million . SQ Stock and Crypto Winter Dorsey won praise from analysts by saying the company was already slashing hiring and cutting its 2022 investment target by $250 million. The price of Bitcoin fell about 35% during the quarter but has recovered over the last month. Outside Bitcoin, the news was good. Afterpay, the “buy now, pay later” (BNPL) platform the company acquired last year, added $150 million of gross profit during the quarter. Cash App, originally created to help small merchants manage their money but now a complete banking and trading suite, saw a 29% gain in profit.
SQ Stock Falls as Bitcoin Weighs on Block
Stock in Block (NYSE: SQ ), formerly known as Square, fell 6% overnight despite earnings beating analyst estimates . The company reported a loss of $208 million, or 36 cents per share, on revenue of $4.4 billion. The problem was Bitcoin ( BTC-USD ). Block CEO Jack Dorsey has been a big advocate for cryptocurrency, actively trading through the company’s Cash App. Its spread from Bitcoin trading fell 24% to $41 million . SQ Stock and Crypto Winter Dorsey won praise from analysts by saying the company was already slashing hiring and cutting its 2022 investment target by $250 million. The price of Bitcoin fell about 35% during the quarter but has recovered over the last month. Outside Bitcoin, the news was good. Afterpay, the “buy now, pay later” (BNPL) platform the company acquired last year, added $150 million of gross profit during the quarter. Cash App, originally created to help small merchants manage their money but now a complete banking and trading suite, saw a 29% gain in profit.