Block (XYZ) saw a resurgence of 8% in its stock price following a strong endorsement from CNBC”s Jim Cramer, who referred to the company as “a real profitable business.” This recovery comes on the heels of a $5 billion buyback program that the fintech firm announced during an analyst meeting, aiming to bolster investor confidence as it navigates recent market turbulence.
On November 17, Truist Securities upgraded Block”s stock to a Buy rating from Hold, increasing its price target to $68 from $67. This upgrade is particularly significant as it follows a more than 20% drop in the stock price over recent months. The analysts at Truist noted that the selloff had been excessive, citing strong momentum in Block”s Square segment, which specializes in providing point-of-sale systems and payment processing solutions for merchants.
In their analysis, Truist raised its earnings forecast for Block for 2026, projecting adjusted earnings per share to reach $3.28, slightly above the consensus estimate of $3.25. Despite concerns over credit risks associated with Block”s Cash App Borrowing feature, which has expanded significantly, the firm maintains a positive outlook for the company.
Further bolstering this optimistic sentiment, William Blair analyst Andrew Jeffrey retained his Buy rating, emphasizing the strong performance in Q3 and positive guidance for Q4. Jeffrey highlighted Block”s strategic focus on consumer liquidity, anticipating continued positive trends in the coming quarters.
Similarly, TD Cowen reaffirmed its Buy rating, setting a price target of $91. The firm believes Block is currently oversold, particularly in light of its recent financial performance. They expect the management to provide fresh medium-term financial projections, which could further enhance investor sentiment.
Block”s Q3 2025 results revealed a modest revenue increase of 2.3% year-over-year, totaling $6.11 billion. However, the company experienced a 19% decline in Bitcoin revenue, which fell to $1.97 billion from $2.43 billion, impacting overall growth. Conversely, both the Cash App and Square segments exhibited significant revenue growth, indicating robust operational performance.
Adjusted diluted earnings per share for the quarter reached $0.54, a slight increase from $0.53 in the same period last year. The company”s operational efficiency improved, allowing it to maintain stable adjusted EBITDA margins despite ongoing investments in platform enhancements.
During his recent commentary on CNBC, Cramer emphasized the aggressive growth targets Block set for the next three years, suggesting that the company is well-positioned for future success. The announcement of the buyback program also contributed to a notable 7.5% increase in stock value on the day it was revealed, making Block the top-performing stock on the S&P 500 that day.
As Block navigates a challenging market environment, the support from analysts and Cramer”s endorsement may provide the necessary momentum for a sustained recovery in its stock price.
