Block Inc.'s SQ fourth-quarter performance and earnings beat have CNBC's Jim Cramer in a dilemma over what to do with the stock.
What Happened: Block, the Jack Dorsey-led fintech company, reported a revenue surprise during the fourth quarter.
The company's stock closed more than 15% up on Friday as a result, but "Mad Money" host Cramer thinks it's "not up enough."
Cramer said Block had an "amazing quarter" and as a result, he pegged the price target to $100.
See Also: Jim Cramer Says McDonald’s AI Drive-Thru Adoption Bodes Well For Nvidia
However, his tweet on the company's stock might leave some people confused.
"Be aware that there are people today who do not care how much they pay to buy SQ, it’s a pathetic lapdog group of buyers who will chase it."
Block reported $5.77 billion in revenue in the fourth quarter, versus Street expectations of $5.7 billion, according to data from Benzinga Pro.
Revenue for the full year came in at $21.92 billion, up 25% year-on-year.
Why It Matters: Post Block's fourth-quarter performance, most analysts have sounded a bullish note for the company's stock, increasing the price target to up to $100.
JPMorgan analyst Tien-tsin Huang underscored strong prospects for Block post its Q4 performance. He stressed Cash App momentum, noting that it could be the next-gen social bank app.
"The overall momentum within Cash App is impressive, and we’ll be watching for data points as Cash App closes product gap."
During a post-earnings conference call with analysts, Dorsey noted that Block is focusing on leveraging artificial intelligence (AI) to become more efficient and ship faster. Weeks prior to the earnings, Block announced significant layoffs impacting over a thousand employees, which is nearly 10% of its workforce.
Read Next: Block Re-Focuses On Cash App, 8 Analysts Provide Their Takeaways From Q4 Results
Photo by Frederic Legrand – COMEO on Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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