Block Stock Slumps Despite Earnings Rising by 65%

Block (NYSE: XYZ) (formerly Square) delivered its second-quarter earnings after the close of trading on Aug. 5, and shares fell by about 6% the next day. Even with a 65% year-over-year jump in adjusted earnings per share, investors focused on weakening growth in the number of Cash App's monthly transacting actives. But the stock's discount may still present an opportunity for patient investors.Image source: Block.The biggest story of the quarter was the impact of Block's AI-centered strategy on profits. Adjusted earnings came in at $1.02 per share, well above the $0.87 per share consensus estimate. The market may dismiss this as a one-time beat, but the earnings call points to a structural shift in costs that could support higher earnings over time.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool