Block's Cash App to Exit UK Market, Stock Drops
Portfolio Pulse from Anusuya Lahiri
Block Inc (NYSE:SQ) announced that its Cash App will cease operations in the UK on September 15, leading to a drop in its stock price. The company is refocusing on the US market. Analyst Jason Kupferberg reiterated a Buy rating on Block with a price target of $82, noting that the company's focus on profitability and US growth could support its stock. Block's stock is down 5.32% following the announcement.
July 18, 2024 | 7:18 pm
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NEUTRAL IMPACT
Block's decision to exit the UK market could benefit PayPal Holdings Inc (NASDAQ:PYPL) as it reduces competition for its Venmo platform. However, the impact on PayPal's stock is likely to be minimal in the short term.
While Block's exit from the UK market reduces competition for PayPal's Venmo, the immediate impact on PayPal's stock is expected to be minimal. The long-term benefits could be more significant as Venmo gains more market share.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
NEGATIVE IMPACT
Block Inc (NYSE:SQ) announced that Cash App will cease operations in the UK, leading to a 5.32% drop in its stock price. The company is refocusing on the US market. Analyst Jason Kupferberg reiterated a Buy rating with a price target of $82, highlighting the company's focus on profitability and US growth.
The decision to exit the UK market has led to a significant drop in Block's stock price. However, the company's refocus on the US market and its profitability strategy could provide long-term support. Analyst Jason Kupferberg's Buy rating and $82 price target indicate confidence in the company's future performance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100