Cathie Wood explains why she’s been buying Block shares.
Barclays sees upside in the crypto stock to $103 a share.
Block stock is currently down 70% versus its record high.
Block Inc (NYSE: SQ) has been in an uptrend since March 13th as famed investor Cathie Wood continued to load up on shares of the financial technology company.
Wood’s bull case for the Block stock
On Friday, Wood spent around $4.3 million on to buy just under 59,000 shares of the multinational split between two of her exchange-traded funds – the flagship ARKK and ARKW.
The purchase came on top of about $29 million worth of Block shares she bought earlier in the same week. Explaining why this morning on CNBC, Wood said:
We’re seeing two things with Block Inc. It is reducing the cost of financial services and so more people are flocking to it. And it is developing a closed-loop ecosystem.
Versus its record high in August 2021, Block stock is down more than 70% at writing.
Barclays sees upside in Block shares to $103
Last month, Block reported per-share earnings for its fiscal fourth quarter that came in shy of Street estimates. Still, Wood said today on “Squawk on the Street”:
[Closed-loop ecosystem] could be one of the big winners in digital wallet space where clients won’t have to interact with banks. Cash App and Square will take care of that.
Her bullish view is in line with Barclays that reiterated its “overweight” rating on the Block stock just a day earlier citing long-term market share gains.
Analyst Ramsey El-Assal sees upside in Block shares to $103 – up more than 30% from here.
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