Block "Oversold and Underestimated:" ABCs Backing XYZ Bull Case
•February 26, 2026
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Why It Matters
If Block’s fintech fundamentals hold, investors could capture significant upside despite short‑term volatility, underscoring the sector’s broader resilience. The case also signals how diversified fintech firms can offset crypto headwinds with core payment growth.
Key Takeaways
- •Block shares near 52‑week low after crypto sell‑off.
- •Square and Cash App usage metrics climbing sharply.
- •Shopify competition pressures Block's merchant services.
- •Monthly active users showing strong growth momentum.
- •Analyst forecasts fintech upside outweighing short‑term headwinds.
Pulse Analysis
Block’s recent price weakness reflects two intertwined forces: a sharp pullback in its cryptocurrency business and heightened rivalry in the merchant‑services arena, particularly from Shopify. While the crypto segment once accounted for a sizable share of revenue, regulatory uncertainty and market sentiment have forced investors to discount that exposure. At the same time, Block’s broader payments platform continues to generate recurring transaction fees, providing a stable cash‑flow foundation that many analysts view as undervalued in the current pricing.
The growth story for Square and Cash App remains the most compelling driver of Block’s future earnings. Recent data from LikeFolio shows a noticeable uptick in monthly active users, with Cash App’s peer‑to‑peer transfers and Square’s point‑of‑sale solutions both posting double‑digit percentage increases quarter over quarter. This user expansion translates directly into higher gross payment volume, which fuels merchant discount revenue and cross‑selling opportunities for services like lending and payroll. For investors, the rising engagement metrics suggest a durable network effect that can sustain revenue growth even as crypto contributions wane.
Competitive pressure from Shopify intensifies the battle for merchant loyalty, yet Block’s integrated ecosystem—combining hardware, software, and financial services—offers a differentiated value proposition. Strategic initiatives such as expanding BNPL offerings and deepening API integrations aim to lock in merchants seeking a one‑stop shop. If these moves succeed, Block could reclaim market share and improve margin profiles, reinforcing Swan’s bullish outlook. Consequently, the stock presents a potential upside play for investors betting on fintech resilience amid sector volatility.
Original Description
With Square and Cash App gaining traction, per @LikeFolio's recent data, Landon Swan makes the argument for an incoming rebound in Block (XYZ). Selling action in crypto and steep competition with Shopify (SHOP) sent the stock back near its 52-week low, though Landon sees Block's fintech prospects as ones that will pay off for investors. Significant traction in monthly active users adds to his bull case.
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