Block, Inc. (XYZ): A Bull Case Theory

We came across a bullish thesis on Block, Inc. on Ye’s Substack by Ye Ye. In this article, we will summarize the bulls’ thesis on XYZ. Block, Inc.'s share was trading at $66.80 as of November 28th. XYZ’s trailing and forward P/E were 13.44 and 20.00 respectively according to Yahoo Finance.

Block, Inc. (XYZ) operates a differentiated fintech ecosystem connecting merchants, consumers, and alternative credit through its Square, Cash App, and Afterpay platforms, with optionality from Bitcoin infrastructure. Unlike peers such as PayPal, Stripe, or Affirm, Block integrates payments, banking, BNPL, and crypto into a single platform, creating network effects and a moat that targets younger and underbanked demographics.

Square drives merchant adoption with point-of-sale hardware, software, and financial services, generating recurring revenue and linking into Cash App and Afterpay to reinforce closed-loop interactions. Cash App, a super-app for personal finance, expands beyond peer-to-peer payments into banking, investing, and crypto, engaging over 50 million monthly active users while driving monetization through deposits, Bitcoin trading, and investing features.

Afterpay, acquired in 2022, strengthens Block’s ecosystem by offering buy-now-pay-later solutions to merchants and consumers, increasing ticket sizes and engagement while capturing credit revenue with default risk managed by proprietary underwriting and high merchant fees.

Block’s Bitcoin initiatives, including trading, mining, wallets, and developer infrastructure, provide long-term strategic optionality, integrating crypto into everyday financial services and supporting financial inclusion. While Tidal offers limited revenue, it aligns with Block’s broader mission of economic empowerment for creators. At a current share price of ~$73.40, Block trades at a forward P/E of 15.7x, slightly above PayPal but well below premium peers like Adyen, suggesting modest near-term upside.

Long-term growth, driven by Cash App monetization, Afterpay integration, and Bitcoin adoption, offers potential stock appreciation to $91–$121 by 2029–2031. Regulatory, credit, and competitive risks remain, but the company’s integrated fintech ecosystem and strategic optionality position it for sustainable growth, making it an attractive long-term investment.

Previously we covered a bullish thesis on Block, Inc. (XYZ) by Long-Term Pick in March 2025, which highlighted strong growth across Square and Cash App, rising free cash flow, and strategic execution in AI and Bitcoin infrastructure. The company's stock price has appreciated approximately by 2.29% since our coverage. The thesis still stands as Block’s ecosystem expansion remains compelling. Ye Ye shares a similar perspective but emphasizes BNPL, Cash App monetization, and Bitcoin optionality.

Block, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held XYZ at the end of the second quarter which was 76 in the previous quarter. While we acknowledge the potential of XYZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.