Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Block is regarded as a stock whose growth or fall in 2023 is tightly knitted with the current outlook in the crypto ecosystem at the time.
Season’s greetings to all our readers around the world. In just a few days, the Christmas break will be upon us and the chilling winds of Winter are already reminding us of a change in Calendar Year. We at Coinspeaker understand that many have different plans for this holiday season, and while many just want to unwind, a couple of others are more concerned about planning their investments ahead of the new year.
For those in the latter category, Block Inc (NYSE: SQ), an American multinational financial technology firm comes off as one of the forefront tech stocks that is on the watchlist of many investors today. Placing Block (SQ) on one’s watchlist is a thoughtful move considering how Block is a dominant firm in the global payment ecosystem through its very popular app, Cash App. Let’s take a look at the possible price changes in Block stock in 2023.
Block was founded by Jack Dorsey and Jim McKelvey and has often maintained a very futuristic vision in all of its business innovations. For instance, Block was one of the first companies to integrate support for Bitcoin on Cash App, long before its top competitor, PayPal Holdings Inc (NASDAQ: PYPL) got to embrace the nascent asset class in 2020.
Besides its investment in a widely used merchant platform, Block changed its name about a year ago to reflect its commitment to expanding its investments and integration of blockchain technology to rebrand its business landscape.
As a result of this, Block is regarded as a stock whose growth or fall in 2023 is tightly knitted with the current outlook in the crypto ecosystem at the time. This outlook was mostly bearish all year-long considering the collapse of Terra (LUNA), TerraUSD (UST), and its ripple effect manifested as bankruptcies in Celsius Network, Three Arrows Capital, and Voyager Digital amongst others.
Block Stock Predictions for 2023
As far as Block stock is concerned, it has received a massive plunge when compared with the broader financial ecosystem. While the S&P 500 Index (INDEXSP: .INX) is down by just about 18% this year, Block has shed as much as 60% in the year-to-date period and by 69% since it rebranded its name from Square to Block.
This shows that despite the propensity to adopt new technology, Block is not immune to losses and stock devaluation. For what it’s worth, Block has been able to decouple from the effect of its share price slump on its revenues. In its third-quarter earnings report, Block said its earnings came in at 42 cents per share on an adjusted basis, up 13% from the year-earlier period.
If Block’s investors can receive the guarantee that the company is likely to turn profitable despite the outlook in the global economy, chances are that many will continue to load up on the stock in the coming year.
Per projections, investors can expect Block’s shares to trade within the range of $68 to $82 in 2023, a deviation from which will be determined per the performance of the company’s other key offshoots. In judging how well Block will do in the long term, the performances of CashApp, AfterPay, and the influence of competitors will have a long role to play in the mid to long term.
Block is a promising company as it is betting on the technology that is on track to power the future digital economy. Investors should look at long-term returns should the decision to bet on SQ be made in the coming year.
That’s a wrap for today’s episode, stay tuned for other insightful pieces tomorrow.