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Why Did Block Plunge 22.2%? Q1 Earnings Miss, Guidance Cut

Mover TrackerFriday, May 2, 2025 4:13 am ET

1min read

On May 2, 2025, Block's stock experienced a significant drop of 22.2% in pre-market trading, reflecting a tumultuous start to the day for the financial technology company.

Block reported weaker-than-expected revenue for the first quarter of 2025, which led to a disappointing guidance for the rest of the year. The company's earnings report revealed a significant shortfall in its financial performance, causing its shares to plummet in extended trading.

In response to the disappointing Q1 results, block downgraded its full-year profit guidance, sending its shares to an all-time low. The company's decision to slash its 2025 profit outlook further exacerbated investor concerns, leading to a substantial decline in its stock price.

Analysts have adjusted their price targets for Block following the company's underwhelming Q1 performance and reduced 2025 outlook. The firm's decision to cut its forecast for 2025 gross profit growth to 12% from 15% has raised concerns about the company's ability to maintain its growth trajectory in the face of a slowing consumer spending environment.

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