On August 5, shares of Jack Dorsey-led Block, a US financial services and digital payments business with headquarters in San Francisco, California, decreased by over 7% in premarket trade. As a result, Block has decided to slow hiring and will reduce its investment target for 2022 by $250 million.
Block reported a profit before costs such as stock compensation of 18 cents per share in the Q2 that ended June 30, down from 49 cents a share in the same quarter last year. Revenue fell to $4.4 billion from $4.68 billion the previous year. Analysts had predicted an adjusted profit of 16 cents per share on $4.33 billion in revenue.
Block reported a net loss of $208 million, compared to a net profit of $204 million the previous year. Bitcoin prices fell about 24% in the third quarter for several reasons, such as regulatory hurdles, rising interest rates, and the Ukraine crisis, all of which have dampened investors’ risk-taking ability.
Square Register was introduced in Ireland and France; Square for Retail was introduced in France and Spain, and Square Appointment was introduced in Japan as part of the third quarter’s ongoing international expansion. In the first half of 2022, the company debuted 44 products in the first half of 2022 on various international markets.
Block declined to provide a solid outlook for the coming quarter, instead providing a range of estimates from various parts of its business.
According to analysts at BTIG:
“Shares had rallied by almost 35% during the eight trading sessions prior to the print. The company likely needed to produce a nearly flawless report in order for that surge to continue”.
According to Coinmarketcap, Bitcoin’s price is $23,198.94 with a 24-hour trading volume of $26,101,748,068. Bitcoin has decreased by 0.29% in the last 24 hours.