1 Spectacular Fintech Stock Down 80% to Buy Hand Over Fist in April

Core Insights - The fintech sector is poised for growth due to the increasing digitalization of the economy, making it an attractive area for investment [1] - Block, a company with a strong position in both merchant and consumer markets, is highlighted as a promising investment opportunity, especially as its shares are trading significantly below their peak [2] Company Overview - Block operates two distinct segments: Square, which provides commerce tools for merchants, and Cash App, a personal finance application for individuals, both of which have seen rapid adoption [3] - In Q4 2024, Square reported a gross profit growth of 12% year-over-year, handling a gross payment volume of $59 billion, while Cash App's gross profit increased by 16$130 billion for Square and $75 billion for Cash App, with expectations for these figures to grow significantly over time [7] - The company is viewed as a critical financial partner for its users, suggesting that there are high switching costs associated with changing providers, which could benefit Block [8][9] Financial Performance - Block's operating income improved dramatically to$892 million in 2024 from a loss of nearly $280 million the previous year, with analysts projecting a compound annual growth rate of 63% for this metric over the next three years [10] - The company's focus on Bitcoin, including ownership of the cryptocurrency and development of related products, is seen as a potential long-term value creator, despite mixed investor sentiment [11] Valuation - The stock is currently trading approximately 80% below its peak from summer 2021, with a forward P/E ratio of 12, indicating a potentially attractive valuation for investors [12]