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Block's Stock Plunges 22.02% on Revised Forecast, Consumer Spending Fears

Mover TrackerFriday, May 2, 2025 5:41 am ET
1min read

On May 2, 2025, Block's stock experienced a significant drop of 22.02% in pre-market trading, reflecting a sharp decline in investor confidence.

Block, led by Jack Dorsey, has revised its forecast for 2025 gross profit growth to 12% from 15%, and projected second-quarter gross profit at $2.45 billion, which is below previous estimates. This adjustment comes amid growing concerns about a slowdown in consumer spending, which accounts for more than two-thirds of U.S. economic activity. The fears of stagflation have intensified, leading to a cautious outlook for the company's financial performance.

The company's first-quarter profit has also fallen, highlighting worries about reduced consumer spending due to the ongoing trade war between the U.S. and China. The trade tensions have made it challenging for businesses to forecast demand, further exacerbating the economic uncertainty. The negative GDP data, which showed a 0.3% annualized decline, has added to the concerns, as companies front-loaded orders to lock in lower prices ahead of anticipated tariff increases.

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Phuffu
05/02
Block's dip = buying opp? 🤔
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Head_Product412
05/02
Holding some $SQ, but diversifying into tech giants for safety. This volatility's wild.
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ImplementEither7716
05/02
@Head_Product412 How long you been holding $SQ? Curious if you think it'll bounce back or keep falling.
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whatclimatecrisis
05/02
GDP drop wasn't a shock. With consumer spending slowing, what's the play, folks?
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CrimsonBrit
05/02
Trade tensions make forecasting like reading tea leaves. Anyone else hedging with cryptocurrencies?
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LarryKingsGhost
05/02
Time to HODL and see what happens
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D4K4TT4CK
05/02
@LarryKingsGhost How long u planning to HODL? Curious if u got a target in mind or just riding it out.
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Serious_Procedure_19
05/02
Trade war's a real bear, folks
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iahord
05/02
Stagflation fears are real. Companies need to adapt fast or get left behind.
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istockusername
05/02
Dorsey's gotta dodge this spending storm
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aiolyfe
05/02
Block's dip ain't surprising. Consumer spending's shaky, and those trade wars ain't helping. 🤔
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the_nebraskan
05/02
Wow!The XYZ stock was in a clear trend, and I made $130 from it!
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mayorolivia
05/02
@the_nebraskan How long were you holding XYZ, and what’s your next move?
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