What does the modern consumer value? Speed, clarity, variety and technology. Preferably in an attractive interface and on a progressive platform. All this is Block, a company that develops solutions for accepting and processing electronic payments. 

Online transactions are a direction that has been developing very dynamically in recent years. The global volume of digital payments in 2022 is expected to be about $8.5 trillion, according to Statista estimates. By 2026, it may expand almost twice. This means that online payment providers will increase their revenue figures. If in 2019 the total revenue of providers was $78 billion, then by 2030 it may be at least $ 160-168 billion, according to Market Research. 

Block’s Strengths:

• the capacity of the Square ecosystem is $120 billion. Attracting new customers and entering international markets will add to profits;
• the capacity of the Cash App application is $70 billion with the widest potential for expansion, including through operations with cryptocurrency;
• combining the Square and Cash App ecosystems, increasing the popularity of the Afterparty platform, promoting the “buy now, pay later” approach among users. Square is a business software that allows you to save on third-party developments, Cash App is designed for individuals – it is a hybrid of an electronic wallet and a personal finance management service. 

Risks:

• decreasing economic growth and consumer spending;
• uncertainty with cryptocurrencies;
• the expectation of a decrease in net profit by the end of 2022 due to a decrease in the exchange rate of bitcoin – the company has more cryptocurrency volumes on its balance sheet.

Analogue companies are still fundamentally different from Block – these are PayPal, Visa and MsaterCard, Upstart, Flywire and others. 

Technically, there is a mixed picture on the daily chart of the Block stock. The MACD indicator rises from the negative zone and forms a buy signal. The Stochastic oscillator declines in the positive zone and gives a sell signal. The nearest resistance levels are $74 and $81. The consensus estimate for the securities is $85-90 for a 1-year perspective.