Financial services and digital payments company Block, Inc. (New York Stock Exchange: SQ) plans to report second quarter results on August 4. The TipRanks website traffic tool shows the company to have a positive second quarter results.
Block website traffic trends are impressive
Using data from SEMrush Holdings (SEMR), the world’s largest website usage monitoring service, TipRanks’ website traffic tool provides insight into Block’s performance this quarter.
According to the tool, visits to squareup.com increased by 20.43% quarter over quarter.
Meanwhile, Block’s website saw a 76.99% month-on-month increase in worldwide visits in June compared to the same period last year. Year-to-date, blocked website traffic increased by 41.32% year-on-year.
As a result, the company’s increased website traffic suggests a positive result for the second quarter.
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What is driving traffic towards blocks?
Block’s Cash App is popular among the masses and contributes greatly to that encouraging website trend. The app offers banking, peer-to-peer money transfer, and bitcoin trading services.
According to Citi Research analyst Peter Christiansen, investors remain optimistic about the healthy trend of Block’s Cash app. Christiansen reiterated his buy rating on the stock. However, analysts lowered their price target from $185 to $135. This represents a 53.3% upside potential from current levels.
But RBC Capital analyst Daniel Perlin said Block’s Cash App could face pressure from widespread economic headwinds, as the app’s primary users are not wealthy. Perlin reiterated its buy valuation on the stock. However, the analyst lowered his price target from $147 to $91. This means he could rise 3.33% from his current level.
What do analysts say about Brock’s second quarter results?
Despite increasing website traffic, analysts are less optimistic about the company’s impending second quarter results.
Analysts expect Block to report earnings per share (EPS) of $0.16 in the second quarter. This corresponds to a decrease of 75.8% for him from the same period last year. In terms of earnings for the quarter, analysts expect earnings to be around $4.33 billion, representing a 7.5% decline from the prior year.
Overall, the consensus among block stock analysts is a strong buy based on 29 buys, 7 holds, and 1 sell. The SQ average price target of $120.97 implies a 37.4% upside potential from current levels. The stock has fallen 66.9% over the past year.
Block’s increasing trend in website traffic shows the popularity of its products and services, especially Cash App. As a result, the increase in online activity on the company’s platform signals a strong performance in the second quarter.
However, an impending recession could hurt consumer sentiment and damage the company’s prospects.
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