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Block S&P 500 Debut Could See 759% Volume Frenzy, 54 Million Shares Snapped Up: JPMorgan
BLOCKBLOCK(US:SQ) Benzingaยท2025-07-21 16:18

Core Insights - Block Inc. is set to join the S&P 500 index on July 23, which is expected to create significant buying pressure from index funds [1] - Analysts predict a net demand of 54.2 million shares, representing 759% of Block's average daily trading volume [1][2] Indexer Demand Breakdown - S&P 500 index funds will need to purchase approximately 70.9 million shares of Block, while funds tracking the broader S&P Composite index will sell about 16.7 million shares, resulting in a net buying wave of 54.2 million shares [2] Trading Volume and Price Target - The influx of demand is likely to increase trading volumes and may lead to short-term price volatility as indexers adjust their portfolios [3] - JPMorgan has raised its price target for Block from $60 to $90, reflecting a five-times next-twelve-month gross profit multiple, which is a slight premium over Block's current valuation [3] Growth Drivers - Key growth drivers for Block include accelerating product velocity and enhanced marketing efforts, with the S&P 500 inclusion expected to boost visibility and investor appeal [4]