Block Shares Plunge 21% Amid Cash App Concerns, Downgrades

Block Inc.'s shares plunged over 20% to hit an 18-month low after the company missed first-quarter earnings and revenue expectations, primarily due to weaker-than-expected performance from its Cash App segment. The fintech firm reported earnings per share and revenue below Wall Street forecasts, with Cash App's gross payment volume and user growth stagnating, especially during what is typically a strong tax refund season. In response to these disappointing results, Block cut its full-year outlook and lowered its gross profit forecasts. Analysts from multiple firms, including Wells Fargo, BMO, Morgan Stanley, and Benchmark, downgraded the stock, citing concerns over slow Cash App monetization, user engagement, and broader macroeconomic headwinds. CEO Jack Dorsey acknowledged the need to refocus on expanding the network to drive future peer-to-peer growth, while the company plans product refinements and targeted marketing to recover momentum in the year's second half. Despite some resilience in non-discretionary spending through Cash App, the muted consumer environment and competitive pressures remain significant challenges for Block going forward.