Block said it will support the usage of stablecoins if people want to buy something or transfer money through Cash App. However, the company is reluctant to launch one on its own.
Fintech firm Block (XYZ) shares rose 7.6% in premarket trading on Friday as the company raised its full-year profit outlook after topping Wall Street’s estimate for quarterly earnings.
The payments firm forecasted a 2025 gross profit of $10.17 billion, compared to $9.96 billion it projected earlier.
“We saw a lot in the second quarter that gave us some healthy signs, some real encouragement around the products that are the key drivers of growth for us and the key drivers of acceleration in the second half,” Chief Financial Officer Amrita Ahuja said on a call with analysts.
The Oakland-based company’s Cash App, which enables peer-to-peer money transfers, posted a gross profit growth of approximately 16% in the three months ended June 30, driven by its short-term credit offering, Borrow, which is integrated into the Cash App. A boost in buy now, pay later transactions also contributed to the growth.
Retail sentiment on Stocktwits about Block was in the ‘bullish’ territory at the time of writing.
One user expected the stock to hit $100 by the end of the week.
According to Block, Cash App had 2.7 million paycheck deposit customers as of June, compared with 2.5 million it had a year earlier. The company has been prioritizing onboarding its Cash App customers as full-fledged banking customers.
Separately, Block said it will support the usage of stablecoins if people want to buy something or transfer money through Cash App. However, the company is reluctant to launch one on its own.
“I don’t think right now that it makes sense for us to offer our own because I just don’t think there’s a huge differentiator above and beyond what exists and, in my view, above and beyond what Bitcoin provides,” Dorsey said.
Block’s stock has fallen 10.8% this year, but it has paired some earlier losses following its induction into the S&P 500 index.
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