• One analyst cut the stock’s price target, while another reduced Block’s Q2 earnings projection.
  • This week is a big one for the market, as the Federal Reserve meets on Tuesday and Wednesday, and several important technology and payments firms release earnings.

What’s going on with Block stock

Block fell hard in morning trading on Monday, rebounded later in the day, and then dropped again late in the day. The fintech stock sank roughly 3.9% to $69.60 shortly after the market opening, but it was down approximately 1.5% to $71.43 at market close. It was a bad day for the markets, but another analyst lowering Block‘s (NYSE:SQ) price target certainly didn’t help matters and Block fell hard .

Why we care

On Monday, Oppenheimer cut Block’s price target from $150 to $112. Even though this is still a 57% rise above current levels, the stock has declined 55% over the past year. Furthermore, the stock has fallen 73% year to date as of July 25. Last week, J.P. Morgan lowered its target from $150 to $107 on concerns about a second-half economic downturn, according to The Fly.

Analysts at Jefferies Financial lowered their earnings per share (EPS) expectations for Block to negative $0.44 per share, down from $0.43, according to MarketBeat.

It was also a bad day for technology companies in general, with the Nasdaq dropping 118 points, or 1%, to 3:35 p.m. ET. Some people believe the drop relates to expectations of another 75 basis-point rate increase by the Federal Reserve Board this week, which will happen on Tuesday and Wednesday. However, higher interest rates would not be suitable for technology firms because they aim to slow down inflation and possibly economic growth.

What now

This is a big week, with the Federal Reserve meeting taking center stage. In addition, this week, several of the significant tech firms — Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Meta Platforms (NASDAQ:FB) – report earnings. These will all impact the Nasdaq index because they are all IT companies.
Investors should also keep an eye on the two major payment companies, Mastercard (NYSE:MA) and Visa (NYSE:V), which will release their second-quarter results this week. In addition, on August 4, Block will publish second-quarter earnings.

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