Block Inc. (NYSE: SQ) Positioned for Growth Across Crypto, Payments, and Profitability
Block Inc., the fintech powerhouse behind Square, Cash App, and Afterpay, is making a strong case as a top stock to watch in 2025. Shares are up nearly 27% in 2024, tracking the broader market, but analysts see considerable upside ahead. With catalysts ranging from its expanding role in cryptocurrency to recovery in payment processing growth, Block is well-positioned to outperform.
One area of significant opportunity is Block’s bitcoin mining hardware business. The company is leveraging advanced 3nm chips in partnership with Core Scientific, giving it a unique foothold in the market. Bitcoin currently accounts for just 3% of Block’s gross profits, but the firm’s initiatives to grow this segment could unlock billions in revenue. If the ongoing crypto rally continues under the incoming administration’s favorable policies, this could become a meaningful driver of growth.
Square, Block’s flagship payment platform, is showing renewed strength. After a challenging period of slower growth, transaction volumes began accelerating in October, and analysts believe this momentum will carry through 2025. Management’s focus on improving merchant onboarding, retention, and product offerings, such as the orders platform, is expected to enhance Square’s performance further. Similarly, Cash App continues to play a key role in driving gross profits higher, with product enhancements and an increasing user base contributing to sustained growth.
The integration of Afterpay, Block’s buy-now-pay-later solution, is another important catalyst. Analysts expect this acquisition to boost monthly active users and deepen customer engagement, translating into greater profitability. Block’s gross profit growth is projected to reach mid-teens in 2025, with adjusted earnings forecasted to climb 49% to $5.59 per share.
Beyond its core business segments, Block’s growing market value of $63 billion makes it a strong candidate for inclusion in the S&P 500. Such a move would enhance its visibility and attract additional institutional investment, adding another layer of potential upside for shareholders. With price targets ranging from $120 to $150, analysts see a path for the stock to gain between 22% and 53% from current levels.
For investors looking to tap into the future of fintech and crypto, Block offers a compelling mix of innovation, profitability, and growth potential. It’s a stock that’s worth watching closely in the new year.
