Blockchain stocks are now becoming the talk of the town. Investors are looking to get their hands on some top companies working on leveraging blockchain technology. Various top businesses are using blockchain technology to streamline their business operation.
Therefore, we can expect to see the value of stocks like Block Inc., to see a change. Block, Inc is one of the top companies that has seen a rapid surge in its share value after the market crash in 2020 due to the Covid-19 pandemic. The company was previously known as Square Inc, and its trading symbol is SQ.
Block has various products and services it offers, including Square, Cash App, Afterpay, etc. While the company is famous for its financial services and digital payment services, it is making great strides in the blockchain sector. Below are the company financials:
- Total assets: $13.93 billion, as of 2021
- Operating income: $232.24 million, as of 2021
- Revenue: $17.66 billion, as of 2021
- Total equity: $3.31 billion, as of 2021
- Net income: $166.28 million, as of 2021
Block’s stock value has seen a steady rise in its value since it went public in 2015. The company’s share value went from $12.85 in the last week of 2018 to around $83 in the last week of February 2020. Block Inc’s stock price saw a significant drop in its value, going down to around $38 when the market crashed due to the pandemic.
However, the growth trajectory of the Block Inc shares value throughout the rest of the months in 2020 till the mid of November 2021 was exceptional. The share value eventually started to fall from the start of Q3 in 2021, and it continued to plummet till the next five months of 2022. Let’s go over the Block’s stock forecast for 2022.
- 1 Block Inc.
- 1.1 Block Inc. Statistical Overview
- 1.2 How to Invest in Block Inc. Stocks?
- 1.3 Conclusion
Block Inc. Statistical Overview
Block Stock Forecast 2022
The bearish trend of Block Inc’s stock price from November 2021 has continued throughout the first five months of 2022. Many investors started to pull out of their investments as the company’s focus shifted toward cryptocurrencies. On the other hand, many are eagerly waiting for new projects on blockchain from the company.
Block Inc’s share price opened at $141 at the start of the year, dropping to $83 by the second week of May. Various factors are causing the company’s stock value to go down. The most significant one is the sell-off the tech stocks in the market.
Big names in the tech industry plummeted significantly, dragging the blockchain stocks with it. The sell-off impacted companies like Block Inc, which saw a massive drop in their stock value. Nevertheless, experts are confident about the company’s growth in the future years.
As per experts at CNN, the median price range for Block Inc’s share price is around $149. This price change represents an increase of 78% from its current price of $83. The high estimate for Block Inc’s share price is $210, and the low estimate is $70 for the next 12 months.
Block Stock 2021
The share value of Block Inc saw many ups and downs throughout 2021 before seeing a bearish trend in the last quarter. One of the main reasons Block Inc’s share value fell was because of its increased focus on blockchain and cryptocurrencies. The bitcoin prices saw a huge fall twice in 2021.
Consequently, many investors were not too keen on Block Inc’s approach toward cryptocurrencies. Bitcoin and other cryptocurrencies have always been volatile, and many Wall Street investors tend to stay away from them. Nevertheless, a great majority of the investors are looking forward to seeing innovations from the company in the blockchain arena.
In addition to the company’s increasing focus on blockchain, it also did not have to meet the revenue expectations set by analysts. Block Inc’s revenue for Q3 in 2021 was $3.8 billion, which was $0.6 billion less than many analysts expected.
While the company’s overall revenue in 2021 increased from the previous years, bitcoin’s volatility is one of the main reasons Block Inc’s stock price continued to fall. The bearish trend continues in the first few months of 2022 as well.
Block Stock 2020
Block Inc’s share value soared by 250% in 2020 even as the world was dealing with the impact of the Covid-19 pandemic. While the company’s share value went down by 40% from the end of February 2020 to the market crash, it still managed to show an impressive recovery from it.
Due to the pandemic, people around the globe had to stay indoors and limit their interaction with others. Many studies showed how the virus could survive on solid surfaces, and the traditional currency can become a way that the disease spreads to others.
Thus, people switched toward using digital modes of payment. Since Block Inc’s primary services included digital payments, it witnessed a massive increase in demand.
Their services allowed SMBs to receive debit and credit payments while enabling people to pay for different products without human interaction. Block Inc’s gross profit for the third quarter in 2020 was $794 million. It shows an increase of $794 compared to the previous year.
The company’s services, such as Cash App and Square, expanded rapidly and doubled their earnings in the next couple of months after the pandemic. Thus, the company’s share value increased from $38 at the height of the pandemic to $235 by the end of 2020.
Moreover, Block Inc announced the acquisition of Afterpay for $29 billion. Afterpay is an Australian platform that allows customers to purchase their favorite items now and pay for them later. Many people on Wall Street took this news positively, causing the share value to increase significantly in 2020.
Block Stock 2019
Block Inc had a turbulent 2019 as the company’s share price stayed volatile throughout the year. The company’s stock value opened at around $58 on the first day of trading in 2019 and saw an increase in it of 25% by the start of the fourth quarter.
However, Block Inc’s share price later went down to $61 by the end of May before bouncing back to $81 at the end of the second quarter. The stock price continued to fall for the rest of the year, closing at $63 on the 30th of December 2019.
The primary reason for the fall in the prices throughout the year was due to the company’s valuation. Many investors weren’t happy with the weaker-than-expected guidance from the company and thus pulled out their money. As a result, Block Inc’s stock price continued to go down throughout 2019.
Block Stock 2018
2018 proved to be a great year as the company’s stock price continued to make the same progress as it did in a previous couple of years. The stock price of Block Inc was at $41 at the start of January 2018 and reached $99 by the end of December 2018.
Many reasons contributed to the rise of the share prices throughout the first ten months of 2018. Most notably, the acquisition of Weebly for $365 million made investors feel more confident about Block Inc’s future growth. The company also launched its services for restaurants, tapping into a new market.
As a result, many analysts predicted the company’s revenues to increase in the next quarters. The company also launched an updated version of the Reader device. However, the stock price fell to $60 by the end of the year from $99 in the second week of October.
The prime reason for the fall was the resignation of the company’s CEO, Sarah Friar. It did manage to gain back its value after realizing the financial statements for the fourth quarter of 2018.
Block Stock 2017
2017 was an exceptional year for Block Inc’s investors since the company’s share value saw an increase of around 196% YTD. The stock price reached $35 by the end of Q4 in 2017 from $14 at the start of the year. The investors were optimistic about the company’s rapid growth in the digital payments industry.
Block Inc saw a massive increase in its revenues in the last couple of years. The company’s revenue grew by 38% and 48% in 2015 and 2016, respectively. Because of Block Inc’s rapid growth, many investors considered it an ideal company for any large name to acquire.
However, the company went on to post some impressive numbers in the coming years. Its share price continued to surge after 2017 before crashing due to the pandemic in 2020.
Block Stock 2016
Block stock prices in 2016 stayed volatile throughout the 12 months. The company’s stock closed at around $8 in Jan 2016 and then reached the value of $13 by the end of Q2. However, it suffered a significant setback, and Block Inc’s stock price went down to the same value that it at the start of the year.
The main reason was the lower revenue growth and not meeting the projections by different analysts. As a result, Wall Street did not expect the company’s stock value to increase any time soon. Block Inc’s stock rebounded later in the year after the company posted phenomenal numbers in Q3 and Q4.
The share value went back to $13 by the end of the year. It continued to witness an upward trajectory in the next coming years or so.
How to Invest in Block Inc. Stocks?
Investing in blockchain stocks, such as Block Inc., is no longer a challenging take. All you need is a reliable online broker to help you make investments instantly without any heavy charges. You don’t have to go through the hassle of finding one because eToro gives you a robust platform to invest in any company you want.
It is a trusted platform that many investors have been using to buy and sell blockchain stocks. The eToro platform also allows you to check out the company’s previous forecasts and stock performance to help you make the right call. In addition, you can find a plethora of learning materials to increase your financial literacy.
Due diligence is a vital component before you invest in a company. You should know about the finances, prospects, and upcoming projects to gauge the company’s performance. It will ensure you take a calculated risk and don’t lose out on all of your investments.
These things are only possible if you have an online platform like eToro that streamline the entering investing process. You can focus more on the research element instead of calculating the commissions you have to pay on the transaction you make. Here is an overview of its simple registration process:
Step 1: Open an eToro Account
The first thing you need to do is fill out the online application form. It requires you to add only a few basic things, and you won’t have to keep any documents with you when registering.
Step 2: Upload Your ID
Once you fill out the application, the next step is to upload your ID for verification purposes. It is an imperative step for you to carry out to comply with the KYC and AML regulations. You can upload your passport/driver’s license, bank account statement for the past six months, and last paid utility bill for identity verification.
Step 3: Make a Suitable Deposit
Decide on the amount you want to invest in Blockchain stocks and make a deposit for it. You can use your PayPal account, debit/credit card, or bank wire transfer to add the funds to your account.
Step 4: Search for Stocks
The eToro broker platform enables you to search for various other stocks. You can use the search option to find companies in different sectors and invest in them.
Many experts believe that the changing market situations will drive the value of multiple Blockchain stocks up. So, whether you are a professional or a beginner investor, it is best to keep an eye on shares like Block Inc.