All articles tagged with #block inc
Block CEO Jack Dorsey cited rapid AI improvements as the rationale for cutting almost half the workforce, but insiders and analysts say the moves resemble standard cost-cutting and reflect prior layoffs, leaving questions about whether AI was the true driver or simply a cover for organizational restructuring.
Block Inc. will cut about 4,000 jobs—nearly half its workforce—while leaning into AI tools, a move CEO Jack Dorsey says reflects how intelligence tools transform building and running a company. The announcement sent Block shares up over 25% after hours; the company reported about $6.3 billion in Q4 revenue and a $234 million hit from bitcoin investments, illustrating the broader AI-driven shift and the crypto-risk backdrop.
Cash App users have until November 18, 2024, to claim part of a $15 million settlement from a class action lawsuit against Block Inc. and Cash App Investing. The lawsuit accused the companies of negligence after unauthorized access to user accounts in 2022 and 2023. Eligible users can receive up to $2,500 for out-of-pocket losses and $75 for lost time, provided they submit necessary documentation. A final approval hearing for the settlement is scheduled for January 13, 2025.
Block Inc., led by Jack Dorsey, has initiated layoffs as part of its plan to reduce staff by up to 10% by the end of 2024, citing the company's rapid growth outpacing its business and revenue growth. The company, formerly known as Square, aims to reach its headcount target gradually through performance adjustments and reorganizing measures, as it focuses on blockchain technology and bitcoin-related ventures.
Block Inc. reported better-than-expected adjusted profit for the third quarter, with earnings of 55 cents per share, beating analysts' expectations of 47 cents per share. The company's revenue also exceeded estimates, reaching $5.6 billion compared to the expected $5.4 billion. Block's gross profit increased to $1.90 billion, in line with consensus. The stock rose 7% in after-hours trading. The company aims to achieve meaningful margin expansion and a target of $2.4 billion in adjusted EBITDA by 2024. Block plans to improve operating-expense discipline, cap employee size at 12,000 by 2024, and assess its real-estate footprint to enhance its cost structure.
Block Inc.'s stock has been underperforming this year, and now the head of its Square merchant business, Alyssa Henry, is stepping down. The announcement comes as Block shares have declined 18% while other payment-technology stocks have performed better. Jack Dorsey will assume Henry's role while continuing to lead Block. The performance of the Square merchant business has been a concern for investors, with slower growth compared to competitors. Some investors see the management shakeup as positive, while others worry about the loss of Henry's expertise. Block acknowledged Henry's significant contributions during her nine-year tenure. UBS recently downgraded Block shares due to concerns about the Square business and a potential slowdown in gross-profit growth.
Block Inc, led by Jack Dorsey, reported a rise in second-quarter revenue, beating estimates. The fintech company's net revenue reached $5.53 billion, compared to $4.4 billion last year, with gross profit rising 27% to $1.87 billion. Block also revised its 2023 earnings outlook to $1.5 billion. Cash App, the company's online payments service, saw a 37% increase in gross profit to $968 million, while Square business reported a gross profit of $888 million. Block remains focused on expanding internationally while controlling costs.
Block Inc. raised its profit forecast for the year and reported positive adjusted operating income for the full year, but its stock fell in after-hours trading due to a July slowdown in a key metric. The company's net income for the June quarter was $123 million, compared to a loss of $208 million in the same period last year. Block also exceeded expectations on gross profit, but indicated a deceleration in July. The company highlighted the strength of its Cash App business, which had 54 million monthly transacting actives in June.
A lawsuit brought by Block shareholders against Jack Dorsey alleged that his acquisition of Tidal, Jay-Z's music streaming service, was nothing more than a "$300 million bar tab to hang out with Jay-Z." The claim was that the idea for Block's acquisition of Tidal came while Dorsey was "summering" with Jay-Z in the Hamptons. The recent legal battle ended in defeat for shareholders, with the Delaware judge overseeing the case ruling against them, leaving Block and Dorsey in the clear, despite the deal being branded as "a $300 million bar tab to hang out with Jay-Z."
ARK Invest CEO Cathie Wood has purchased $19.9 million worth of Block Inc. shares across its ETFs, just days after buying $21 million in Coinbase stock. This comes despite the SEC suing Coinbase and Binance for offering unregistered securities. ARK Invest's new shares of Block Inc. represent its fourth largest holding at 4.81%. Wood believes that the SEC's regulation by enforcement approach has taken a toll on cryptocurrency innovators in the US, and is bullish on Bitcoin over the long term.
A shareholder class action lawsuit against Jack Dorsey and other board members at Block Inc over the company's purchase of Jay-Z's streaming service Tidal has been dismissed by a Delaware judge. The judge said the Florida pension fund leading the case did not show that Block's directors acted in bad faith, although the purchase was a "terrible business decision." Block agreed in March 2021 to pay $306m for an 87.5% stake in Tidal, which was losing money, had lost major contracts, faced a Norwegian criminal probe into its streaming numbers, and had accepted a $50m loan from Jay-Z to shore up its finances.
A shareholder class action lawsuit against Jack Dorsey and other board members at Block Inc over the company's purchase of Jay-Z's streaming service Tidal has been dismissed by a Delaware judge. The judge said the Florida pension fund leading the case did not show that Block's directors acted in bad faith, although the purchase was a "terrible business decision." Block agreed in March 2021 to pay $306m for an 87.5% stake in Tidal, which was losing money, had lost major contracts, faced a Norwegian criminal probe into its streaming numbers, and had accepted a $50m loan from Jay-Z to shore up its finances.
Cathie Wood, founder of Ark Invest, criticized Hindenburg's short report on Block Inc. as "wildly misleading" and accused the short seller of underestimating the intelligence of investors and analysts. Ark Invest has been buying up Block shares since the release of the report, holding the stock in three of its ETFs. The short report claimed that Cash App was the only electronic P2P payment processor mentioned in a COVID-19 fraud indictment, but failed to mention that the defrauded funds had come via Bank of America.
Cathie Wood's Ark Invest purchased over 300K shares of Block, Inc (SQ) and over 250K shares of Coinbase Global (COIN) across three of her actively managed ETFs, even as both stocks suffered double-digit declines. SQ is listed as ARKK’s eighth largest holding, while COIN is the fund's fourth largest position. In ARKW, SQ is listed as the fund’s fifth largest portfolio stake, and COIN represents the ETF's number one holding. ARKF lists COIN as its second most significant position and SQ as the ETF’s third heaviest weighting.
Jack Dorsey, co-founder of Twitter and Block Inc., lost $526 million in net worth after Hindenburg Research's report alleging that the payments company ignored widespread fraud. Block's stock fell as much as 22% on Thursday, before closing down 15%. Dorsey's personal fortune is mostly tied up in Block, with his stake estimated to be worth $3 billion. Hindenburg has previously targeted billionaires, causing their fortunes to fall, including Gautam Adani and his empire earlier this year and electric carmaker Nikola Corp. in September 2020.