Block's Retail Push with Purdys Can't Lift Slumping Stock as $0.36B Volume Ranks 285th

On September 3, 2025, Block (SQ) closed at a 0.58% decline, with a trading volume of $0.36 billion, ranking 285th in market activity. The stock's performance follows a strategic development in its retail expansion. Purdys Chocolatier recently announced a nationwide partnership with Block’s Square division, integrating its point-of-sale and business operations technology across over 80 Canadian retail locations. This collaboration highlights Square’s growing influence in brick-and-mortar retail, though its immediate financial impact remains limited compared to ongoing catalysts like Cash App user growth and embedded finance adoption.

The partnership underscores Square’s ability to attract established clients through its expanding hardware and omnichannel solutions, such as the recently launched Square Handheld devices. These tools aim to enhance in-store experiences and support larger retail clients, aligning with Block’s broader strategy to diversify revenue streams beyond digital payments. However, analysts caution that intensifying competition in payment processing and fee pressures could challenge profit margins in the near term.

Long-term projections for Block remain mixed. While the company aims for $32.8 billion in revenue and $2.4 billion in earnings by 2028, this would require a 11.2% annual growth rate, a slowdown from current earnings. Community fair value estimates for Block range between $60.37 and $100.22, reflecting optimism about operational execution but concerns over market saturation. The stock’s valuation remains a key area of debate, with some analysts suggesting potential undervaluation against its growth trajectory.

Backtesting results indicate that Block’s projected fair value of $85.02 implies a 12% upside from its current price. This valuation is derived from revenue forecasts, earnings trends, and market multiples. However, the analysis does not account for recent price-sensitive announcements or qualitative factors, emphasizing the need for ongoing monitoring of competitive dynamics and regulatory developments.