Key Takeaways Toast added 8,500 net new locations, driving 24% growth and higher penetration in SMB markets.Block's Square saw GPV rising 10% and strong food & beverage growth, aided by new QSR wins.Analysts lifted earnings estimates 12.8% for TOST and 3.6% for XYZ for the current year.Toast Inc. (TOST) and Block Inc. (XYZ) are leading players in the merchant payments and point-of-sale (POS) space. TOST provides software-as-a-service (SaaS) and hardware solutions focused on the restaurant market. On the oth ...

Key Takeaways Toast unveiled the Toast Go 3 handheld with a 24-hour battery and built-in cellular connectivity.AI engine ToastIQ powers upsells, marketing tools and workflow automation for restaurants.Toast raised 2025 gross profit and EBITDA guidance, but rising costs and tariffs may hurt margins.Toast, Inc.’s (TOST) recent product launches and robust expansion moves suggest it is positioning itself for stronger profitability. The company’s latest launch is the Toast Go 3 handheld, which uses ToastIQ with ...

Key Takeaways Block is projected to report Q2 revenues of $6.32B and EPS of $0.60. EPS is likely to move down 35.5% y/y.Block forecasts a Q2 gross profit of $2.45B and adjusted operating income of $450M.Square's product innovation helps drive ecosystem strength despite macro pressures.Block (XYZ) is set to report second-quarter 2025 results on Aug. 7, after market close.The Zacks Consensus Estimate for second-quarter revenues is pegged at $6.32 billion, indicating an increase of 2.64% from the year-ago quar ...

Core Insights - Block, Inc. (XYZ) shares have increased by 24.7% over the past month, significantly outperforming the industry average of 5.7% [1][9] - The company gained 7.2% in intra-day trading after being added to the S&P 500 Index, effective July 23, 2025 [1][3] - Block's market capitalization stands at $44.79 billion, well above the S&P 500's eligibility threshold of $20.5 billion [4] Company Developments - Block's inclusion in the S&P 500 is expected to drive increased demand from index funds and passive investors, enhancing stock price and liquidity [3] - The company emphasizes its strong business foundation and the efforts of its workforce in building tools for economic access across its brands, including Square and Cash App [2] Financial Performance - Block's forward 12-month P/E ratio is 26.51X, which is lower than the Zacks Internet Software Market industry's average of 40.95X, indicating that the stock is trading at a cheaper valuation compared to competitors like Reddit, Inc. [10] - The Zacks Consensus Estimate for Block's earnings indicates growth of 3.4% for 2025 and 9.4% for 2026, with the 2025 earnings per share estimate rising to $2.40 [11] Sales Estimates - The current Zacks Consensus Estimate for Block's sales in the upcoming quarters is as follows: $6.32 billion for Q2 2025, $6.37 billion for Q3 2025, $24.93 billion for the current year, and $27.27 billion for the next year [12] - Year-over-year growth estimates for sales are projected at 2.60% for Q2 2025, 6.66% for Q3 2025, 3.36% for the current year, and 9.36% for the next year [12]

Block (XYZ 0.57%) had a decent, if unspectacular, June, ultimately emerging from the month with a 10% gain in share price. A product launch in an important market overseas, announced as we approached July, was a catalyst, as were several positive analyst notes across the preceding weeks.A good month for analyst takesIn the opening days of the month, Block earned a recommendation upgrade from Evercore ISI, whose analyst Adam Frisch ticked up his rating to outperform (buy, in other words) from in line (hold). ...

Core Viewpoint - Block's stock has seen recent appreciation due to positive developments, but year-to-date performance remains negative amid competitive pressures and consumer spending softness [1][2]. Group 1: Stock Performance - Block shares have appreciated approximately 5% in the past month and 12.7% in the past week [1]. - Year-to-date, Block shares are down 26.5% due to increasing competitive pressure and softness in consumer spending, particularly in discretionary areas [2]. - Block shares have underperformed compared to competitors like PayPal and Affirm, which have seen declines of 16.3% and 15.8% respectively [3]. Group 2: Business Developments - Cash App Afterpay has expanded its merchant base, adding brands across various categories, which may enhance its market presence [7]. - Block's Cash App Afterpay combines services to allow eligible customers access to Buy Now Pay Later products when shopping online [8]. - Block is focusing on improving engagement with Cash App Card customers and has received FDIC approval to offer consumer loans nationwide through Cash App Borrow [9][10]. Group 3: Financial Outlook - Block expects gross profit of $9.96 billion for 2025, indicating a growth of 12%, with expectations of accelerating growth in the latter half of the year [11]. - The Zacks Consensus Estimate for 2025 earnings is $2.72 per share, down 30.4% over the past 30 days, indicating a 19.29% decline from 2024 [15]. - The consensus estimate for first-quarter 2025 earnings is 61 cents per share, down 36.5% over the past 30 days, reflecting a 34.41% year-over-year decline [16]. Group 4: Valuation and Market Position - Block shares are considered overvalued with a forward 12-month Price/Earnings (P/E) ratio of 19.92X compared to PayPal's 13.45X [17]. - Block shares are trading below the 200-day moving average, indicating a bearish trend [20].