Why Payments Provider Block's Stock Is Down 10% Friday

Core Insights - Block's shares have decreased by approximately 25% since the beginning of 2025, with a notable drop of about 10% following the release of its quarterly results, which did not meet Wall Street expectations [1][3][6] Financial Performance - Block reported adjusted earnings of 54 cents per share, with revenue increasing by about 2% year-over-year to $6.11 billion in the third quarter, both figures falling short of analysts' estimates [2] - The company's gross profit rose by 18% to $2.66 billion, primarily driven by a 24% increase in gross profit from Cash App, while the payments unit Square saw a more modest 9% growth [2] Market Reaction - The significant decline in Block's stock price reflects a broader trend where investors are increasingly punishing companies for missing earnings expectations during the current earnings season [3][6] - Despite raising its full-year guidance for gross profit to $10.24 billion from $10.17 billion and adjusted operating income to $2.056 billion from $2.03 billion, investor focus remained on the earnings miss and rising expenses [3] Expense Analysis - Block experienced a nearly $70 million increase in general and administrative costs, partly attributed to an in-person company event, which would have been roughly flat year-over-year without this event [3]