Block is rated a buy, driven by explosive Cash App lending growth and robust margin expansion post-workforce reduction. XYZ posted 27% YoY gross profit growth and 56% YoY adjusted operating income growth, exceeding guidance and highlighting operational leverage. Management projects 19–20% YoY gross profit growth for 2024, with incremental margins expected to trend toward 25–30% long term.
Block: The Post-Restructuring Era Has Begun (Rating Downgrade)
Source: Seeking Alpha