Jack Dorsey's Block All Set for Q2 Earnings — Will XYZ Stock Keep Its Bullish Streak Going?

Block Inc. (NYSE:XYZ) will release its financials for the second quarter after the closing bell on Wednesday. Here’s what to expect as the stock builds strong momentum ahead of the announcement.

In Focus: Earnings Estimates, Analyst Ratings

Analysts estimate the fintech company to report earnings of 79 cents per share, up 27% year-over-year, but down 7% from the previous quarter. Block is expected to report quarterly revenue of $6.50 billion, up 7.04% from the same quarter last year.

Block beat earnings expectations in the first quarter but missed on the top line.

The XYZ stock has a consensus “Buy” rating with an average price target of $88, implying a roughly 4% upside. Notably, five of the last six analyst ratings revised the price target upward.

Can the Bulls Sustain Their Momentum?

Short interest dropped from 20.3 million shares in June to 15.9 million in July, representing 3.5% of the company’s total float. A declining short interest is typically interpreted as a bullish signal.

Meanwhile, the Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, flashed a "Buy" signal for XYZ, according to TradingView.

The Relative Strength Index indicated a “Neutral” stance, and the Bull Bear Power indicator similarly pointed to a balanced market.

The stock has rallied strongly over the short and medium term, posting an impressive 30% gain so far this year.

‘Buzz’ Grows

The Jack Dorsey-led firm has placed a significant bet on Bitcoin’s utility as a medium of exchange, deploying Bitcoin payment capabilities within its Square point-of-sale system. The feature lets merchants accept BTC payments with no processing fees until 2027.

As of this writing, Block holds 9,032 BTC, worth $581 million, on its balance sheet, ranking as the 15th-largest corporate holder of the apex cryptocurrency, according to BitcoinTreasuries.net.

The firm also rolled out an updated version of its hardware Bitcoin (CRYPTO: BTC) wallet, BitKey, last quarter. It comes with a secure touchscreen and uses 2-of-3 multisig technology, eliminating seed phrases.

Lately, Block has piqued interest with the launch of Buzz, a new Slack-like platform where humans and AI agents work together in the same workspace.

Price Action: At the time of writing, BTC was exchanging hands at $61,237.57, up 3.42% in the last 24 hours, according to data from Benzinga Pro.

Block shares fell 0.63% in after-hours trading after closing 3.11% higher at $84.64 during Tuesday’s regular trading session.

XYZ stock shows a stronger price trend across short-, medium-, and long-term periods, according to Benzinga’s Edge Stock Rankings.

Photo by Frederic Legrand – COMEO on Shutterstock