Block Stock (XYZ) Crashes 14% as Wall Street Analysts Slash Targets Post-Q3 Earnings Disaster
Another 'promising' blockchain play turns into a shareholder bloodbath. XYZ shares nosedived after reporting Q3 earnings that missed expectations—proving once again that Web3 hype doesn't pay the bills.
The damage report: A 14% freefall at open, with analysts tripping over themselves to downgrade price targets. Because nothing inspires confidence like herd mentality in a panic.
Silver lining? At least the company didn't try to spin this as 'investment in future growth'—though we're still waiting for the obligatory tweet thread about 'building through the bear market.'
Meanwhile, crypto traders are laughing all the way to their cold wallets. DeFi summer this ain't.
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During its third quarter, the American company generated 54 cents per share, well below analysts’ expectations of 64 cents. Its revenue also came in at $6.11 billion, $200 million short of what Wall Street anticipated.
Moreover, the company, which is led by CEO Jack Dorsey, a Twitter (now X) cofounder, expanded its gross profit 18% year-over-year to $2.66 billion. The growth was driven by its mobile payment platform Cash App’s strong performance in the Buy Now, Pay Later segment.
Analysts Rain Price Cuts on XYZ Stock
Reacting to the results, Morgan Stanley analyst James Faucette, who trimmed his price target on XYZ stock by 8% to $71, highlighted the performance of Square, Block’s e-commerce payment solutions division.
Faucette noted that Block’s miss on analysts’ forecast for its earnings before interest, tax, depreciation, and amortization (EBITDA) and the slower growth from Square are “likely disappointing” to investors. The analyst reiterated his Equal Weight (Hold) rating on the company’s shares.
Similarly, Piper Sandler analyst Patrick Moley noted that while Block raised its operating income for the full Fiscal Year 2025, the updated guidance matched the consensus forecast and likely failed to impress investors. Moley trimmed his price target by 5% to $55 per share and maintains his Underweight (Sell) rating on XYZ stock.
Furthermore, while Keefe Bruyette analyst Vasundhara Govil also cut his price target by a similar percentage to $90, Govil stuck with his Outperform (Buy) rating. This is despite pointing to Block missing analysts’ earnings per share estimates and facing higher operating expenses and interest costs that impacted its gross profit.
Is XYZ a Good Stock to Buy?
Across the larger Wall Street, Block’s shares currently have a Moderate Buy consensus rating, according to TipRanks. This is based on 24 Buys, four Holds, and three Sells assigned by 31 analysts over the past three months.
At $89.21, the average XYZ price target suggests more than 25% growth potential from the current trading level.
