Block shares were on track for their second-worst day Friday, plunging more than 20% as investors digested a brutal quarterly report and a wave of analyst downgrades centered on one issue: Cash App.
The first-quarter earnings miss rattled Wall Street, prompting multiple firms — including Wells Fargo, Seaport, BMO, and Benchmark — to downgrade the stock overnight. Many flagged fresh concerns around stagnant Cash App user growth, muted consumer demand, and a soft macro environment that may weigh on monetization.
“Stagnation in the number of active users of the app is even more concerning than users’ reduced spending,” Benchmark wrote in its note, downgrading Block to Hold.
Block 5 day stock chart
The financial services company missed across the board — on revenue, gross profit, and payment volume — and slashed its full-year guidance, citing macro uncertainty, weaker consumer spending, and lower-than-expected inflows during what’s typically a strong tax refund season.
“I just don’t think we were focused enough and had enough attention on the network and the network density, and that is our foundation,” CEO Jack Dorsey said on the earnings call. “We of course want to deepen engagement with our customers through banking services and Borrow, and I have no doubt we will … but at the same time, we need to make sure that we continuously grow our network, and that starts with peer to peer.”
